Biotech company 10x Genomics (NASDAQ: TXG) will be announcing earnings results this Thursday after the bell. Here’s what to look for.
10x Genomics beat analysts’ revenue expectations last quarter, reporting revenues of $166 million, flat year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Is 10x Genomics 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 10x Genomics’s revenue to decline 5.3% year on year, a reversal from the 9.8% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. 10x Genomics has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at 10x Genomics’s peers in the life sciences tools & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Illumina delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 1.8%, and West Pharmaceutical Services reported revenues up 21%, topping estimates by 8.4%. Illumina traded up 7.1% following the results while West Pharmaceutical Services was also up 11.6%.
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 6.5% on average over the last month. 10x Genomics is down 1.4% during the same time and is heading into earnings with an average analyst price target of $24 (compared to the current share price of $21.59).
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