Pacific Biosciences of California (NASDAQ: PACB) is flying early on in today’s trading session. The company reported earnings, and the report wasn’t all that great. However, investors don’t mind the poor earnings report because the company also announced acquisition news. Today, we’ll talk about:
- The earnings and acquisition news;
- what we’re seeing from PACB stock as a result; and
- what we’ll be watching for ahaed.
PACB Announces Earnings And Acquisition News
As mentioned above, Pacific Biosciences of California is having an incredibly strong start to the trading session in the pre-market hours this morning after announcing its earnings and news with regard to an acquisition. Here’s what we saw:
Earnings – In terms of the earnings report, PACB didn’t do very well. During the quarter, the company generated revenue of $18.2 million, showing a 22.9% decline from $23.5 million on a year over year basis. Earnings remained flat on a year over year basis with a loss of $0.19 per share. Also, net income was a source of pain, with a loss of $25 million, compared to the $22 million lost in the same quarter of last year.
Acquisition – While the earnings news proved to be a source of pain for PACB, the company also released acquisition news that outweighed the poor earnings report. According to the company, it has entered into an agreement with Illumina to be acquired for $8 per share in an all-cash deal. This represents an incredibly strong premium.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Pacific Biosciences, while the earnings news was negative, the company is being acquired, which will return immediate value to shareholders. So, it comes as no surprise that investors are looking past earnings and finding opportunity in the acquisition. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:12), PACB is trading at $7.53 per share after a gain of $3.02 per share or 66.96% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PACB. In particular, we’re interested in following the story surrounding the acquisition of the company. While the agreement is definitive, the transaction is still subject to customary closing conditions and regulatory approval. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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