PACB Stock Falls on Preliminary Q4 Sales Miss, 7 Vega Systems Shipped

Pacific Biosciences of California, Inc. PACB, popularly known as PacBio, recently shared its preliminary results for the fourth quarter and full year of 2024. Shares of PacBio closed 8% down on Jan. 14, as the top line missed market expectations.The company is scheduled to release fourth-quarter results on Feb. 15, 2025.Q4 Preliminary ResultsPacBio reported preliminary revenues of $39.2 million, down 33% year over year. The Zacks Consensus Estimate is pinned at $40.9 million.Consumable revenues are anticipated to be $18.8 million compared with $18.9 million in the year-ago period. Instrument revenues are anticipated to be $15.3 million, reflecting a decline of 56.4% year over year. Service and other revenues are expected to be $5.1 million, up 15.9% from the year-ago level.Pacific Biosciences of California, Inc. Price Pacific Biosciences of California, Inc. price | Pacific Biosciences of California, Inc. QuotePACB launched SPRQ chemistry during the fourth quarter, enabling the HiFi genome on the Revio system. The company also commenced shipment of the Vega benchtop system ahead of schedule, bringing HiFi sequencing to more customers. PacBio shipped 23 Revio and 7 Vega sequencing systems during the fourth quarter.Full-Year Preliminary ResultsPacBio’s preliminary revenues for the full year are estimated to be $154 million, implying a decline of 23% year over year. The Zacks Consensus Estimate is pinned at $155.7 million.Consumable revenue growth was a standout, reflecting an 11% increase over 2023. This growth underscores the increasing adoption of PacBio’s sequencing platforms, particularly the Revio system, which has emerged as the fastest-growing platform in the company’s history. Revio’s ability to sequence up to 2,500 human genomes annually at less than $500 per genome has proven to be a pivotal factor in this success.The company’s financial position has also improved. A reduction in adjusted annualized operating expenses by more than $75 million and a successful convertible note exchange have collectively bolstered PacBio’s balance sheet. By year-end 2024, the company reported approximately $390 million in cash and investments, ensuring sufficient liquidity to fund its ongoing strategic initiatives.Analysis and OutlookPacBio’s focus on driving innovation is evident in its 2024 milestones. The introduction of SPRQ chemistry during the fourth quarter enhanced the throughput and cost-effectiveness of the Revio system, allowing for more efficient sequencing workflows. Meanwhile, the Vega platform’s affordability and versatility have positioned it as a strong contender in the benchtop sequencing market, which represents an addressable market exceeding $1 billion annually.The company’s commitment to expanding its clinical portfolio has also been a focal point. Collaborations with clinical laboratories and the development of targeted gene panels for neurological disorders underscore PacBio’s strategy to strengthen its foothold in the long-read sequencing domain. Additionally, the adoption of HiFi sequencing for population health studies and rare disease diagnostics exemplifies the growing relevance of PacBio’s technologies in addressing complex genetic challenges.Looking ahead, PacBio aims to capitalize on the momentum generated in 2024. Key priorities for 2025 include full-scale launch of Vega platform, advancing the development of new sequencing technologies, and accelerating samples onto the Revio platform via SPRQ chemistry and application kits. By leveraging its multi-platform sequencing portfolio, PacBio is well-positioned to capture market share and achieve sustainable financial growth in the years to come.Price PerformanceShares of the company have lost 10.2% in the past three months against the industry’s 0.2% growth and the S&P 500’s 0.7% increase.Image Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderTempus currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 14.9% compared with the industry’s 0.2% growth in the past three months.Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.ARAY’s shares have gained 15.8% compared with the industry’s 0.2% growth in the past three months.Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.ABT’s shares have lost 4.1% in the past three months compared with the industry’s 3.5% decline.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. 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