10x Genomics, Inc. (TXG) reported a disappointing third quarter, falling short of both earnings and revenue expectations. The company posted a quarterly loss of 30 cents per share, compared to market expectations for a loss of 34 cents per share. Revenue also missed the mark, coming in at $151.654 million versus the analyst consensus estimate of $158.632 million.
The company attributed the underperformance to “greater-than-anticipated disruption from the sales restructuring we implemented in the quarter and cautious customer spending,” according to Serge Saxonov, Co-founder and CEO of 10x Genomics. While these factors are currently impacting the company’s growth, Saxonov expressed confidence in the long-term potential of 10x Genomics’ technology.
Reflecting the current challenges, 10x Genomics slashed its FY24 revenue guidance from $640 million-$660 million to $595 million-$605 million. Despite the disappointing results, 10x Genomics shares gained 6.3% to trade at $16.79 on Wednesday, potentially signaling a market belief that the revised guidance reflects a bottoming out of the company’s performance.
Following the earnings announcement, several analysts adjusted their price targets on 10x Genomics. UBS analyst Dan Leonard maintained a Neutral rating but lowered the price target from $25 to $20. Similarly, JP Morgan analyst Rachel Vatnsdal kept the stock at Neutral but reduced the price target from $20 to $14. Goldman Sachs analyst Matthew Sykes maintained a Sell rating and cut the price target from $16 to $14. Conversely, Citigroup analyst Patrick Donnelly kept a Buy rating but lowered the price target from $35 to $23.
The mixed analyst reactions highlight the current uncertainty surrounding 10x Genomics’ future. While some analysts remain optimistic about the company’s long-term prospects, others express concerns over its near-term performance. Investors considering TXG stock should carefully weigh these factors before making any investment decisions.
