Genomics company Pacific Biosciences of California (NASDAQ: PACB) will be announcing earnings results this Wednesday after market hours. Here’s what you need to know.
PacBio missed analysts’ revenue expectations last quarter, reporting revenues of $39.01 million, down 1.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is PacBio a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PacBio’s revenue to grow 2.3% year on year, a reversal from the 3.8% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PacBio has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PacBio’s peers in the life sciences tools & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Illumina delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 1.1%, and West Pharmaceutical Services reported revenues up 8.7%, topping estimates by 5.7%. Illumina traded down 18.6% following the results while West Pharmaceutical Services was up 2.2%.
Read our full analysis of Illumina’s results here and West Pharmaceutical Services’s results here.
There has been positive sentiment among investors in the life sciences tools & services segment, with share prices up 2.4% on average over the last month. PacBio is down 16.1% during the same time and is heading into earnings with an average analyst price target of $2.54 (compared to the current share price of $2.41).
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