TD Cowen analyst Dan Brennan has adjusted the price target for 10x Genomics (TXG, Financial), decreasing it to $11 from a previous target of $15 while maintaining a Hold rating on the stock. The revision follows the company's decision to retract its annual guidance due to an unpredictable environment affecting U.S. A&G customers, who contribute to 40%-50% of the firm's sales. Despite this uncertainty, the company is making significant efforts to reduce expenses, which is considered a positive development by the analyst in a recent post-earnings evaluation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for 10x Genomics Inc (TXG, Financial) is $14.11 with a high estimate of $26.00 and a low estimate of $7.50. The average target implies an upside of 54.60% from the current price of $9.13. More detailed estimate data can be found on the 10x Genomics Inc (TXG) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, 10x Genomics Inc's (TXG, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for 10x Genomics Inc (TXG, Financial) in one year is $43.13, suggesting a upside of 372.66% from the current price of $9.125. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the 10x Genomics Inc (TXG) Summary page.
TXG Key Business Developments
Release Date: May 08, 2025
- Total Revenue: $154.9 million for Q1 2025.
- Adjusted Revenue: $138.1 million, down 2% year-over-year, excluding license and royalty revenue.
- Consumables Revenue: $115.4 million, up 5% year-over-year.
- Chromium Consumables Revenue: $84.1 million, approximately flat year-over-year.
- Spatial Consumables Revenue: $31.2 million, up 18% year-over-year.
- Instrument Revenue: $14.8 million, down 42% year-over-year.
- Chromium Instrument Revenue: $5.9 million, down 25% year-over-year.
- Spatial Instrument Revenue: $8.9 million, down 49% year-over-year.
- Gross Profit: $105.4 million, with a gross margin of 68%.
- Adjusted Gross Margin: 64%, excluding license and royalty revenue.
- Operating Expenses: $144.8 million, decreased from $154.4 million year-over-year.
- R&D Expenses: $64.2 million, decreased from $68.6 million year-over-year.
- SG&A Expenses: $89.7 million, increased from $85.8 million year-over-year.
- Operating Loss: $39.3 million, compared to a loss of $61.5 million in Q1 2024.
- Net Loss: $34.4 million, compared to a net loss of $59.9 million in Q1 2024.
- Cash Position: $427 million in cash, cash equivalents, and marketable securities.
- Geographical Revenue: Americas: $73.8 million (down 7%), EMEA: $31.9 million (down 8%), APAC: $32.4 million (up 22%).
- Workforce Reduction: Global workforce reduced by approximately 8%.
- Q2 Revenue Guidance: Expected to be within a range of $138 million to $142 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- 10x Genomics Inc (TXG, Financial) reported total revenue of $155 million for Q1 2025, with strong performance in consumables indicating robust core demand.
- The company settled worldwide patent litigation with Vizgenerate on favorable terms, receiving a $26 million settlement.
- Increased usage of products driven by price elasticity and new applications supports long-term growth potential.
- Recent product launches, including GEM-X technology and Visium HD, are resonating well with customers, enhancing technology leadership.
- Strong cash position and cost-saving measures, including an 8% workforce reduction, are being implemented to navigate current challenges.
Negative Points
- First quarter revenue, excluding settlement-related revenue, was $138 million, down 2% year-over-year, primarily due to a significant decrease in instrument revenue.
- The macro environment, particularly US academic and government research funding, is creating deep uncertainty and impacting customer purchasing behavior.
- 10x Genomics Inc (TXG) withdrew its full-year revenue guidance due to unpredictable customer purchasing behavior and reduced visibility.
- Instrument revenue was down 42% year-over-year, with significant declines in both Chromium and spatial instrument sales.
- The company is exposed to ongoing uncertainty in the US academic and government research funding environment, which supports 40% to 50% of its revenue.
