Genomics company Pacific Biosciences of California (NASDAQ: PACB) will be reporting earnings this Thursday after market hours. Here’s what investors should know.
PacBio beat analysts’ revenue expectations last quarter, reporting revenues of $44.65 million, up 13.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat 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 7.7% year on year, a reversal from the 4.3% decrease 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. 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 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. PacBio is up 10.1% during the same time and is heading into earnings with an average analyst price target of $2.38 (compared to the current share price of $1.56).
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