10x Genomics TXG is scheduled to report third-quarter 2024 results on Oct. 29, before market open.

In the last reported quarter, the company’s adjusted loss per share of 32 cents beat the Zacks Consensus Estimate by 31.9%.

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Let’s take a look at how things might have shaped up for GEHC prior to the announcement.

Factors at Play

10x Genomics’ top line is primarily driven by its two leading platforms — Visium and Zenium — in spatial biology and Chromium in single cell biology. The company’s second-quarter results reflected strong contributions from Consumables while Instruments sales remained under pressure. The trend is likely to have continued in the soon-to-be-reported quarter.

The spatial biology consumable sales are likely to have grown on the back of strong contributions from Visium HD (launched during the first quarter) as well as additional contributions from Xenium Prime 5K (launched during the second quarter). This growth is expected to have been further boosted by recovering Chromium consumables sales as customers work through the stalling and trialing of the GEM-X, launched in the first quarter. However, the prioritization of spatial experiments might have hurt Chromium consumables sales during the third quarter.

The expected robust growth for Consumables is likely to have been offset by weaker instrument sales amid budgetary pressure, leading to lower capital expenditures and extended purchase cycles for TXG’s customers. Sales are likely to have been down for both spatial and single cell biology instruments, especially Xenium instruments. Moreover, the lower cost of GEM-X is likely to have led to reduced revenue recognition.

The ongoing budgetary headwinds for its customers caused TXG to reduce its revenue guidance from $670-$690 million to $640-$660 million.

10x Genomics Price and EPS Surprise

10x Genomics price-eps-surprise | 10x Genomics Quote

Per preliminary results announced earlier this month, TXG’s revenues of approximately $151.7 million reflect a 1% decline from the prior-year level. Instruments sales declined 46%, while consumable sales increased 10%. Services revenues are also up 48% year over year. Apart from declining Instruments sales, the decline in total revenues was also caused by modifications made to commercial processes and organizations to increase effectiveness, especially in the United States, in the previous quarter. The company stated that the transition was more disruptive than anticipated.

Q3 Estimates

The Zacks Consensus Estimate for revenues is pegged at $151.6 million, implying a decline of 1.3% year over year.

The Zacks Consensus Estimate for loss per share is pinned at 34 cents, projecting an improvement of 33.3% from the prior-year quarter’s level.

Earnings Beat Likely

Our proven model predicts an earnings beat for 10x Genomics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: The company has an Earnings ESP of +8.46% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #1.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this reporting cycle.

Masimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to release third-quarter 2024 results on Nov. 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%. The Zacks Consensus Estimate for EPS implies an improvement of 33.3% from the year-ago reported figure.

ACADIA Pharmaceuticals ACAD has an Earnings ESP of +38.39% and a Zacks Rank #3 at present. The company is expected to release third-quarter 2024 results on Nov. 6.

ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 42.37%. The Zacks Consensus Estimate for EPS implies a surge 127.5% from the year-ago figure.

Privia Health Group PRVA has an Earnings ESP of +27.27% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2024 results on Nov. 7.

PRVA’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 44.17%. The third-quarter EPS is expected to improve 20% from the year-earlier reported figure.

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