TXG stock crashed Friday after genetic technology outlet 10x Genomics preannounced lackluster second-quarter sales.
The company noted declines for its Europe, Middle East-Africa and Asia-Pacific regions. Overall, 10x expects $114.5 million in sales for the June quarter. Sales would decrease 1% and lag Wall Street's projections for $120.6 million, according to FactSet.
"We continue to have strong confidence in our longer-term opportunity, technology leadership and the underlying strength of our markets," Chief Executive Serge Saxonov said in a written statement. "We are more excited than ever to deliver on the full potential of single cell and spatial biology."
On the stock market today, TXG stock toppled 17.1% to 35.90.
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TXG Stock: First Sales Decline In Two Years
10x Genomics provides the tools necessary to perform genetic research. Revenue has ramped up in the past several years. The last quarterly decline was in June 2020 when sales tumbled more than 23% as laboratories shut down at the height of the Covid pandemic.
In a news release, 10x didn't give a reason for the current decline. Revenue from the EMEA region fell about 11% year over year to $25.6 million. APAC region sales slipped 15% to roughly $18.1 million. Sales in the Americas region, on the other hand, rose 8% to about $70.9 million.
TXG stock analysts also expect the company to lose 34 cents a share in the quarter, widening from a 10-cent per-share loss in the year-earlier period.
In a separate news release, the company said it hired Jim Wilbur as its chief commercial officer, effective June 27. Wilbur is coming to 10x from Meso Scale Discovery, which makes instruments and assays used in life sciences and biodefense research.
Shares Are In A Lengthy Rut
Shares of 10x Genomics are in a yearlong rut.
After the company went public in 2019, its shares soared to a peak in mid-2021. Since then, however, TXG stock has generally trended down. On Thursday, shares skidded below their 50-day moving average, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
