PacBio (PACB) Third Quarter Results Missing Estimates, Top Revenue – November 3, 2021


Pacific Biosciences of California, Inc. (PACB Free Report), popularly known as PacBio, posted an adjusted loss per share of 23 cents in the third quarter of 2021, larger than the loss of 14 cents per share a year ago. The figure was also larger than Zacks’ consensus estimate of the loss of 21 cents per share.

The company’s GAAP earnings per share (EPS) were 8 cents in the quarter from a loss of 14 cents per share a year ago.

Income in detail

PacBio reported third quarter revenue of $ 34.9 million, up 82.8% year-over-year. The figure was 5.9% higher than Zacks’ consensus estimate.

The year-over-year increase was in part due to strong sales of consumables and instruments.

Sequentially, sales improved by 13.9%.

Segment analysis

Revenue generated was $ 30.5 million, up 14.9% from the prior year quarter.

PacBio placed 44 Sequel II / IIe systems in the third quarter of 2021, compared to 20 Sequel II systems in the quarter of the previous year. This brings the total installed base of Sequel II / IIe systems to 326 as of September 30, 2021, from 168 as of September 30, 2020.

Instrument revenue for the third quarter of 2021 was $ 15.9 million, up 106.5% year-over-year.

Consumables revenue for the third quarter of 2021 was $ 14.6 million, up 82.5% from the prior year quarter.

Services and other revenue reached $ 4.4 million, up 33.3% year-over-year.

Margin trend

In the quarter under review, PacBio’s gross profit increased 119.2% to $ 15.5 million. Gross margin increased 737 basis points (bps) to 44.4%.

Selling, general and administrative expenses increased 113.9% to $ 31.6 million. Research and development spending increased 67% year-on-year to $ 27.5 million. Adjusted total operating expenses of $ 59.1 million jumped 89.2% year-over-year.

Adjusted total operating loss totaled $ 43.6 million in the quarter presented compared to the adjusted total operating loss for the prior year quarter of $ 24.2 million.

Financial situation

PacBio ended the third quarter of 2021 with cash, cash equivalents and investments (excluding short-term and long-term restricted cash) of $ 1.08 billion, up from $ 1.14 billion at the end of the second. trimester.

Advice

PacBio reiterated its financial outlook for the year 2021, which it provided in its second quarter earnings call in August.

The company expects its revenue for 2021 to be in the range of $ 128 million to $ 132 million, which is 62-67% growth over the comparable 2020 figure. Zacks’ consensus estimate for the same thing is currently set at $ 130.4 million.

Our opinion

PacBio ended the third quarter of 2021 with a larger-than-expected loss per share. The continuing adjusted loss per share incurred by the company increases our apprehensions. Another area of ​​concern is the year-over-year operating loss for the company.

On a positive note, the better-than-expected earnings for the company in the reported quarter are encouraging. PacBio recorded strong increases in its products, services and other revenues during the quarter. The company also benefited from strong instrument and consumables revenues during the quarter.

PacBio continues to benefit from its flagship Sequel system. The growing base of the company’s Sequel II / IIe systems reinforces our optimism. The strong performance of the company in all geographies was another asset. The adoption of PacBio’s high-quality sequencing platforms by the global genomics and diagnostic testing company – Prenetics Group Limited – is also encouraging. The multitude of PacBio mergers and takeovers over the past few months also bodes well. The expansion of gross margin also bodes well for the stock.

Zacks rank and choice of keys

PacBio currently wears a Zacks Rank # 3 (Hold).

Some top-ranked stocks in the broader medical space that have announced quarterly results are Western Pharmaceutical Services, Inc. (WST Free report), Thermo Fisher Scientific Inc. (TMO Free report) and Chemed Company (CHE Free report).

West Pharmaceutical, ranked Zacks Rank # 2 (Buy), reported third quarter 2021 adjusted EPS of $ 2.06, beating Zacks’ consensus estimate by 13.2%. Third quarter revenue of $ 706.5 million exceeded the consensus mark of 3.2%. You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.

Thermo Fisher announced adjusted EPS of $ 5.76 in the third quarter of 2021, beating Zacks’ consensus estimate by 23.3%. Third-quarter revenue of $ 9.33 billion was 12% above Zacks’ consensus estimate. He currently has a Zacks Rank # 1.

Chemed announced third quarter 2021 adjusted EPS of $ 5.06, beating Zacks’ consensus estimate by 13.5%. Third-quarter revenue of $ 538.7 million was 1.3% higher than Zacks’ consensus estimate. He currently has a Zacks Rank # 2.


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