Pacific Biosciences of California, Inc. PACB, popularly known as PacBio, delivered an adjusted loss per share of 15 cents in first-quarter 2025, narrower than the year-ago adjusted loss of 26 cents per share. The adjusted loss per share topped the Zacks Consensus Estimate by 21.1%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The company’s GAAP loss per share was $1.44 in the quarter compared with the year-ago period’s loss of 29 cents.
PacBio’s Revenues in Detail
PacBio registered total revenues of $37.2 million in the first quarter, down 4.3% year over year. However, the figure surpassed the Zacks Consensus Estimate by 6.2%.
Shares of this company lost 4.2% in yesterday’s after-market trading.
PACB’s Geographical Analysis
PacBio’s revenues from the Americas were $16.3 million, down 8% year over year. The decline resulted from the region being most affected by government funding headwinds and uncertainty regarding NIH funding.
In the Asia-Pacific region, PacBio recorded revenues of $11.6 million, reflecting a 9% decline year over year. In the region, consumables showed particularly strong performance, driven by increased utilization of the Revio system, which reached its highest level since launch. Additionally, customers in Japan placed their typical fiscal year-end stocking orders, while some customers in China made purchases in advance of potential tariffs.
The Europe, the Middle East and Africa (EMEA) region registered revenues of $9.3 million, which improved 11% year over year. In the EMEA region, Europe experienced strong Revio placements, particularly within the 'Hospital and Clinic' customer segment.
PacBio’s Segmental Analysis
Total Product revenues amounted to $31.1 million, down 11.1% from the year-ago quarter.
Within the Product segment, Instrument revenues were $11 million, down 42.1% year over year. This primarily resulted from lower shipments of the Revio system.Instrument revenues in the first quarter of 2025 included 12 Revio sequencing systems and seven Vega sequencing systems.
PACBended the quarter with 282 cumulative Revio system shipments.
Consumables revenues for the first quarter of 2025 were $20.1 million, up 25.6% from the prior-year quarter. AnnualizedRevio pull-through per system was $236,000 in the quarter.
Service and other revenues totaled $6million, up 57.9% year over year. This was driven by an increase in service contract revenues related to Revio.
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
Pacific Biosciences of California, Inc. price-consensus-eps-surprise-chart | Pacific Biosciences of California, Inc. Quote
PACB’s Margin Trend
In the quarter under review, PacBio’s adjusted gross profit increased 18.8% year over year to $15 million. The adjusted gross margin expanded 700 basis points to 40%.
Sales, general and administrative expenses declined 8.2% year over year to $40.2 million. Research and development expenses decreased 33.2% year over year to $29.1 million. Adjusted total operating expenses of $61.7 million decreased 29.2% year over year.
Total adjusted operating loss was $54.2 million in the reported quarter compared with the prior-year quarter’s $74.6 million.
PacBio’s Financial Position
PacBio exited the first quarter of 2025 with cash and investmentsof $343.1million compared with $389.9million at 2024-end.
PACB’s Guidance
PacBio has provided its revenue outlook for the second quarter of 2025 and revised the outlook for 2025.
Management expects second-quarter 2025 revenues to be flat compared with the first quarter of 2025 due to typical seasonality and lower Revio systems revenues. However, this is likely to be partially offset by increased Vega system revenues. The Zacks Consensus Estimate is pegged at $36.9 million.
The company now expects to achieve revenues between $150 millionand $170 million for 2025 compared with the previous guidance of $155 million to $170 million. The Zacks Consensus Estimate is pegged at $158.7 million.
Our Take
PacBio exited the first quarter of 2025 with better-than-expected results, where both earnings and revenues beat their respective Zacks Consensus Estimate. A robust increase in its Service and other revenues was encouraging. The expansion of the adjusted gross margin and reduction in adjusted operating loss also bode well.
During the quarter, PacBio initiated a company-wide restructuring plan aimed at reducing operating expenses and sharpening its strategic focus on the long-read sequencing business. This initiative is projected to lower annualized adjusted operating expenses by approximately $45 million to $50 million by the end of 2025, streamlining the company's resources toward its core strengths.
The company also entered into a licensing agreement with The Chinese University of Hong Kong and Centre for Novostics to enhance methylation detection capabilities within its HiFi sequencing platform. Through this collaboration, PacBio plans to implement advanced deep learning models enabling native detection of 5hmC, hemimethylated 5mC, and 6mA. These improvements will be delivered via software updates to the Revio and Vega systems, expanding their application in cancer research, neuroscience, and liquid biopsy. Per management, new results demonstrated HiFi sequencing's capability to resolve highly similar paralogous genes, such as SMN1/SMN2 and CYP21A1P/CYP21A2, which have historically posed challenges in human genetics. These findings suggest expanded potential for HiFi in rare disease diagnostics and carrier screening.
However, PacBio’s first-quarter performance was hindered by macroeconomic challenges, including reduced academic funding in the United States, newly implemented U.S.-China tariffs and uncertainty around NIH budget cuts. These factors led to a decline in Revio system shipments and a lowered revenue outlook. Internally, the company paused development of its high-throughput short-read platform to focus on long-read technologies, reflecting resource constraints.
PacBio’s Zacks Rank and Stocks to Consider
PACB currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the industry that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and Boston Scientific Corporation BSX.
CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.
Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.
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