PACB Stock Falls Despite Q3 Earnings Beat, Revenues Decline Y/Y

Core Insights - PacBio reported an adjusted loss per share of 17 cents for Q3 2024, an improvement from a loss of 27 cents in the same quarter last year, beating the Zacks Consensus Estimate by 15% [1] - Total revenues for the quarter were $40 million, down 28.2$20.1 million, a decline of 31% year over year, primarily due to decreased Revio shipments [3] - Asia-Pacific revenues totaled $10.8 million, reflecting a 32$9.1 million, down 17% year over year [3] - Product revenues increased to $35.3 million, up 11.2$16.8 million, a decrease of 51.6% year over year due to lower Revio unit shipments [4] - Consumable revenues reached $18.5 million, up 9.5$4.7 million, also up 9.5% year over year [5] Margin and Expenses - Adjusted gross profit decreased by 28.1% to $13 million, but adjusted gross margin expanded by 100 basis points year over year to 33$43.7 million [6] - Research and development expenses declined by 46.3% year over year to $25.5 million [6] - Adjusted total operating expenses were$62.4 million, down 31% year over year [6] Financial Position - PacBio ended Q3 2024 with cash, cash equivalents, and investments of $471.1 million, down from$509.8 million at the end of Q2 2024 [8] - The company revised its revenue outlook for 2024, expecting fourth-quarter revenues to be flat to slightly up compared to Q3 2024 [8] - Full-year revenues are anticipated to be lower than the previous estimate of $170 million, with the Zacks Consensus Estimate at$168.1 million [9] Market Performance - Despite mixed results, with earnings beating estimates but revenues missing, shares fell by 14.7% in after-market trading [10] - Year-to-date, PacBio's stock has declined by 75.1%, contrasting with the industry's 6.3% growth and the S&P 500's 24.7% increase [14]