On Monday, Pacific Biosciences (NASDAQ:PACB) of California (NASDAQ:PACB), a leader in genetic sequencing technology, experienced a significant adjustment in its stock's financial outlook. Piper Sandler has lowered the price target for PACB shares to $2.00 from the previous $6.50 while maintaining a Neutral rating on the stock.
The revision comes as Piper Sandler adjusts its expectations for the company's future financial performance. The firm has updated its 2024 revenue and earnings per share (EPS) estimates for Pacific Biosciences to $167 million and -$1.09, respectively. These figures represent a decrease from the earlier forecast of $236 million in revenue and -$1.05 EPS. The revised estimates now stand in contrast to the consensus of $190 million in revenue and -$1.94 EPS for the same year.
Looking further ahead, the 2025 revenue and EPS projections have also been revised. Piper Sandler now expects Pacific Biosciences to achieve $202 million in revenue with an EPS of -$0.91 for the year 2025. This is a decrease from the previous estimates of $337 million in revenue while maintaining the same EPS forecast. The new projections are below the general market consensus, which anticipates $253 million in revenue and an EPS of -$0.75 for 2025.
For the year 2026, the estimated revenue has been adjusted to $260 million with an EPS of -$0.67, down from the prior forecast of $467 million in revenue and -$0.51 EPS. This latest estimate by Piper Sandler is more conservative than the market consensus, which expects Pacific Biosciences to report $347 million in revenue and an EPS of -$0.54 for the year 2026.
InvestingPro Insights
Pacific Biosciences of California (NASDAQ:PACB) has been navigating a challenging financial landscape, as highlighted by the recent price target adjustment from Piper Sandler. To provide a more comprehensive view, InvestingPro data shows a market capitalization of $535.18 million, reflecting the company's current valuation in the market. Despite a significant revenue growth of 49.54% in the last twelve months as of Q1 2024, Pacific Biosciences has not been able to translate this into profitability, with an operating income margin of -154.35% for the same period.
InvestingPro Tips suggest that analysts are not expecting the company to be profitable this year, and the stock has experienced notable volatility and a steep decline in price over the last six months. However, it's worth noting that the company's liquid assets exceed its short-term obligations, providing some financial cushioning.
For investors seeking a deeper analysis and additional InvestingPro Tips, there are currently 11 more tips available for Pacific Biosciences on InvestingPro, which can be accessed at https://www.investing.com/pro/PACB. These insights could further inform investment decisions, especially given the stock's recent performance and analysts' revisions of earnings upwards for the upcoming period.
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