10x Genomics Inc (NASDAQ:TXG) recently announced a loss for the fourth quarter, reporting earnings per share (EPS) of $(0.40). This number fell short of the expected $(0.30).
Despite total sales of $165.02 million for the quarter, which was a 10% drop from last year, it still exceeded the forecast of $159.39 million.
The company’s gross margin reached 67%, an increase from 63% last year. This improvement was due to changes in their product mix.
Sales of instruments dropped significantly, from $38.4 million to $24.35 million. This included $10.93 million from Chromium instruments and $13.43 million from Spatial instruments. Additionally, consumable sales fell from $140.31 million to $133.53 million, with $97.74 million coming from Chromium and $35.79 million from Spatial consumables. However, revenue from services grew from $5.27 million to $7.14 million.
Looking ahead, 10x Genomics projects fiscal year 2025 sales between $610 million and $630 million. This estimate is slightly below the consensus forecast of $631.14 million. At the midpoint of the guidance, there is potential for double-digit growth in both Chromium reactions and spatial revenue.
Analyst William Blair pointed out that the company’s plans do not factor in any macroeconomic improvements. They expect about a $7 million hit due to uncertainties surrounding NIH funding.
Reactions from Analysts:
- William Blair sees improvements in 10x’s sales strategy, noting that while these changes may hurt profits in the short term, they are essential for future growth.
- They believe the company’s commercial changes will be wrapped up by mid-2025, with pricing pressures expected to lessen by the fourth quarter.
- Analysts from different firms have reacted differently: some maintain a “Market Perform” rating, while others have downgraded their outlooks.
- Stifel maintains a “Buy” rating but has adjusted their price target down from $21 to $18.
- JP Morgan and UBS analysts have also lowered their price targets for the stock.
Current Stock Performance: As of Thursday, the stock price of TXG is down 6%, sitting at $11.28.
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10x Genomics, consensus estimate, William Blair, quarterly sales
