10x Genomics: Deciphering The Preliminary Q3 Earnings

(15min)

Summary

  • 10x Genomics has faced significant revenue declines and operational challenges, with Q3 revenue missing expectations and instrument sales dropping 46% year-over-year.
  • Despite the setbacks, consumables and services revenue showed growth, indicating customer retention and continued use of 10x's platforms.
  • The company is undergoing commercial process adjustments and remains confident in its long-term growth prospects, despite current economic pressures and competition.
  • I remain cautious about initiating a TXG position immediately but see potential buying opportunities if the stock shows signs of recovery and stability.
  • Looking for a portfolio of ideas like this one? Members of Compounding Healthcare get exclusive access to our subscriber-only portfolios. Learn More »
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In my last 10x Genomics (NASDAQ:TXG) article, I discussed how the ticker had been under relentless selling pressure, dropping from $209 in June 2021 to around $20 at the time of publication. 10x had been able to report some modest growth in

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This article was written by

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Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

He is the leader of the investing group Compounding Healthcare. Features of the group include: Several model healthcare portfolios, a weekly newsletter, a daily watchlist, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TXG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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