Pacific Biosciences of California (PACB) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following ...

Core Viewpoint - Pacific Biosciences of California, Inc. (PacBio) reported mixed results for the second quarter of 2024, with adjusted loss per share beating estimates while revenues fell short of expectations [11]. Revenue Analysis - PacBio generated revenues of $36 million in Q2 2024, a decrease of 24.3% year over year, missing the Zacks Consensus Estimate by 11.2% [2]. - Revenue breakdown by region showed: - Americas: $20.8 million, down 13% year over year [3]. - Asia-Pacific: $8.2 million, down 36% year over year [3]. - EMEA: $7 million, down 35% year over year [3]. Segmental Performance - Product revenues were $31.7 million, down 27.3% from the previous year [4]. - Instrument revenues fell to $14.7 million, a 51% decline year over year due to lower Revio unit shipments [4]. - Consumables revenues increased to $17 million, up 24% from the prior year [4]. - Service and other revenues totaled $4.3 million, reflecting a 9% year-over-year increase [5]. Margin and Expense Trends - Adjusted gross profit decreased by 15.9% to $13.2 million, but adjusted gross margin improved by 400 basis points to 37% year over year [6]. - Sales, general and administrative expenses rose by 13.1% to $45.9 million [6]. - Research and development expenses decreased by 16.7% to $38.5 million [6]. - Total operating loss was $175.8 million, wider than the loss of $73.2 million in the prior year [7]. Financial Position - As of the end of Q2 2024, PacBio had cash, cash equivalents, and investments totaling $509.8 million, down from $561.9 million at the end of Q1 2024 [8]. Guidance - PacBio updated its revenue outlook for 2024, expecting revenues to be around the lower end of the $170-$200 million range, with the Zacks Consensus Estimate at $177.5 million [10]. - The company anticipates $80 million in instrument revenues for fiscal 2024, including 115 Revio shipments, and consumable revenues of $72 million [10]. Strategic Developments - In July 2024, PacBio announced a collaboration with Novogene to utilize its Revio long-read sequencing system in a new lab in Munich, Germany [13]. - The company also partnered with Form Bio to advance initiatives in the Adeno-associated virus industry [13]. - In March 2024, PacBio introduced the PureTarget repeat expansion panel, enabling thorough examination of genes linked to severe neurological conditions [14].

Pacific Biosciences of California (PACB) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.24. This compares to loss of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this maker of genetic analysis technology would post a loss of $0.26 per share when it actually produced a loss of $0.26, delivering no surprise. Over the last ...

| --- | --- | --- | --- | |-----------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | PacBio Q2 2024 Earnings | | | | | | | | | | Presentation August 7, 2024 Second Quarter 2024 Earnings Call | | | | | | | | | | | | | | | | | | | | | | | | 1 Statement regarding use of non‐GAAP financial measures PacBio reports non‐GAAP results for basic and diluted net income and loss per share, net income, net loss, gross margins, ...

Revenue Performance - Revenue for Q2 2024 was $36.0 million, down 24% from $47.6 million in Q2 2023[2] - Total revenue for the three months ended June 30, 2024, was $36,013 thousand, a decrease of 24% compared to $47,573 thousand for the same period in 2023[11] - Product revenue for the three months ended June 30, 2024, was $31,746 thousand, down 27% from $43,655 thousand in the prior year[12] Profit and Loss - Gross profit for Q2 2024 was $5.9 million, significantly lower than $15.5 million in Q2 2023, impacted by $4.6 million in restructuring expenses[2] - Gross profit for the three months ended June 30, 2024, was $5,938 thousand, representing a decline of 62% from $15,546 thousand in the same quarter of 2023[12] - Net loss for Q2 2024 was $173.3 million, compared to a net loss of $69.8 million in Q2 2023, with a net loss per share of $0.64[2] - GAAP net loss for the three months ended June 30, 2024, was $173,319 thousand, compared to a loss of $69,833 thousand for the same period in 2023[15] Operating Expenses - Operating expenses surged to $181.8 million, compared to $88.7 million in Q2 2023, including a $93.2 million goodwill impairment charge[2] - Total operating expenses for the three months ended June 30, 2024, were $181,784 thousand, significantly higher than $88,721 thousand in the same period of 2023[15] - Non-GAAP total operating expenses for the three months ended June 30, 2024, were $70,984 thousand, compared to $86,701 thousand in the same period last year[15] Goodwill Impairment - Goodwill impairment recorded during the three months ended June 30, 2024, was $93,200 thousand, attributed to a sustained decrease in the company's share price[13] - Goodwill impairment of $93,200 thousand was recorded during the three and six months ended June 30, 2024, due to a sustained decrease in the company's share price[16] Research and Development - Research and development expenses for the three months ended June 30, 2024, were $38,485 thousand, down from $46,173 thousand in the same quarter of 2023[12] Non-GAAP Metrics - Non-GAAP gross profit was $13.2 million with a gross margin of 37%, compared to $15.7 million and 33% in Q2 2023[3] - Non-GAAP net loss for Q2 2024 was $55.2 million, an improvement from a non-GAAP net loss of $65.6 million in Q2 2023[3] - Non-GAAP gross profit for the three months ended June 30, 2024, was $13,216 thousand, compared to $15,729 thousand in the same period last year, with a gross profit margin of 37%[15] Cash and Assets - Total assets as of June 30, 2024, were $1,509,491 thousand, a decrease from $1,746,013 thousand as of December 31, 2023[14] - Cash and investments as of June 30, 2024, were $509,802 thousand, down from $631,416 thousand at the end of 2023[14] - Stockholders' equity as of June 30, 2024, was $492,700 thousand, a decrease from $701,304 thousand as of December 31, 2023[14] Product Development and Strategic Initiatives - The Revio HiFi sequencing system was selected for Singapore's Long-Read Sequencing Flagship Project, enhancing precision medicine efforts[4] - PacBio aims to reduce annual run rate expenses by over $75 million while maintaining key product development programs[6] Restructuring Costs - Restructuring costs for the three months ended June 30, 2024, amounted to $18,028 thousand, primarily related to employee separation costs and leasehold improvements[15][16] Fair Value Adjustments - The change in fair value of contingent consideration was due to fair value adjustments of milestone payments payable upon the achievement of respective milestone events[16]

Pacific Biosciences of California (PACB) ended the recent trading session at $2.05, demonstrating no swing from the preceding day's closing price. This change was narrower than the S&P 500's 0.5% loss on the day. Elsewhere, the Dow saw an upswing of 0.5%, while the tech-heavy Nasdaq depreciated by 1.28%. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.91 per share and revenue of $177.46 million, indicating changes of +18.02% and -11.5%, respectively, compared to the previou ...

In the latest trading session, Pacific Biosciences of California (PACB) closed at $1.88, marking a +1.62% move from the previous day. This change outpaced the S&P 500's 2.32% loss on the day. Meanwhile, the Dow experienced a drop of 1.25%, and the technology-dominated Nasdaq saw a decrease of 3.64%. Investors will be eagerly watching for the performance of Pacific Biosciences of California in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 7, 2024. The company ...

Core Insights - Novogene has established a new lab at the Innovation and Start-Up Center for Biotechnology (IZB) in Munich, which will serve as a strategic hub for its European operations and enhance its global network of labs [1] - The Revio long-read sequencing system from PacBio will complement Novogene's existing sequencing portfolio, addressing limitations in depth and accuracy that other technologies face [1][8] - There is anticipated high demand for the Revio in rare disease and cancer research, as well as in microbial and agrigenomics, enabling the assembly of full genomes of rarely studied species [1][5] Company Overview - Novogene is a leading provider of genomic services and bioinformatics expertise, with nearly 2,000 employees and a strong presence in the global market [11] - The company has a significant sequencing capacity and has been involved in over 22,000 publications in top-tier journals, establishing itself as a trusted partner in genomics [11] - Novogene utilizes advanced platforms from Illumina, PacBio, and Oxford Nanopore Technology to support its services [11] Technology and Applications - The Revio system is designed to provide high accuracy and throughput, enabling cost-effective in-depth genomic research across various fields, including rare diseases, cancer, microbes, and agriculture [8] - The Revio's capabilities allow for the identification of complex repetitive regions, structural variants, and novel isoforms that are often missed by traditional short-read and exome methods [5] - The integration of automation into Revio's workflows is planned to enhance efficiency and accessibility for a broader range of customers [5]

Core Insights - PacBio's Revio long-read sequencing system is being utilized by Novogene to enhance its new lab in Munich, Germany, aimed at serving the European scientific community [1][2] - The Revio system offers increased accuracy and throughput, enabling cost-effective in-depth genomic research across various fields including rare diseases, cancer, microbes, and agriculture [1][2] Company Overview - PacBio is a leading life science technology company focused on developing advanced sequencing solutions to address complex genetic problems, utilizing both HiFi long-read and SBB short-read sequencing technologies [4] - Novogene is a prominent provider of genomic services with significant sequencing capacity and expertise, operating globally with nearly 2,000 employees and a strong publication record [7] Strategic Developments - The new lab at the Innovation and Start-Up Center for Biotechnology in Munich will serve as a strategic hub for Novogene's European operations, complementing its existing global network [2] - Novogene anticipates high demand for the Revio system particularly in the rare disease and cancer research sectors, due to its ability to detect complex genomic features that other technologies may miss [2][3] Technological Advancements - The Revio system is expected to enhance the efficiency of genomic research by integrating more automation into its workflows, making long-read data more accessible to a broader customer base [2] - The collaboration between PacBio and Novogene aims to support advanced genomic applications that can improve human health and environmental sustainability [3]

The call will be webcast and may be accessed at PacBio's website at https://investor.pacificbiosciences.com/. If using the dial-in option, please join the call ten minutes before the start time using the appropriate number above and ask to join the "PacBio Q2 Earnings Call." Pacific Biosciences of California, Inc. (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically c ...