Illumina shares dip as revenue outlook cut overshadows Q2 beat

EditorRachael Rajan
Published 06/08/2024, 21:26
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SAN DIEGO - Illumina Inc. (NASDAQ:ILMN) reported better-than-expected second quarter results but lowered its full-year revenue guidance, sending shares down 1% in after-hours trading on Tuesday.

The genetic sequencing company posted adjusted earnings of $0.36 per share, surpassing analyst estimates of $0.11. Revenue came in at $1.11 billion, topping expectations of $1.09 billion.

However, Illumina cut its fiscal 2024 Core Illumina revenue forecast, now projecting a 2% to 3% decline compared to 2023. This is down from its previous outlook of flat to 2% growth. The company cited softening instrument demand in a constrained funding environment.

"The Illumina team delivered results ahead of our expectations in the quarter, driven by disciplined execution on our strategic priorities," said CEO Jacob Thaysen. "Consumable sales remained solid as customers continued to increase their sequencing activity, but instrument demand has softened in a constrained funding environment."

On a more positive note, Illumina raised its Core Illumina non-GAAP operating margin guidance to a range of 20.5% to 21% for the full year, up from its prior outlook of 18% to 19%.

The company also introduced fiscal 2024 adjusted EPS guidance of $3.80 to $3.95, compared to the $3.91 consensus estimate.

Illumina completed the spin-off of cancer detection company GRAIL on June 24. For the second quarter, Core Illumina revenue fell 6% year-over-year to $1.09 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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