Illumina Shares Drop 5% After Disappointing Q4 Revenue Outlook

SAN DIEGO - Illumina Inc. (NASDAQ:ILMN) reported third-quarter earnings that exceeded analyst estimates, but the company's fourth-quarter revenue projections fell short of forecasts, causing its shares to drop by 5.8% in after-hours trading.

The genetic sequencing company reported adjusted earnings of $1.14 per share, surpassing the consensus estimate of $0.88. The quarterly revenue was $1.08 billion, in line with analyst projections.

However, Illumina’s outlook for the fourth quarter disappointed investors. The company expects fourth-quarter revenue to be approximately $1.07 billion, which is below analysts' estimates of $1.15 billion.

Illumina has lowered its full-year revenue forecast for 2024, now expecting a decrease of about 3% in Core Illumina revenue compared to the fiscal year 2023. The company attributed the reduced outlook to a constrained macroeconomic environment in the near term.

CEO Jacob Thaysen stated, "The fundamental demand for Illumina's products and applications remains strong, and we are making significant progress in delivering profit margin and earnings growth."

On a positive note, Illumina raised its full-year adjusted earnings per share expectation to a range of $4.05 to $4.15, exceeding the consensus of $3.91.

The company also announced an increase in its fiscal year 2024 forecast for Core Illumina non-GAAP operating margin to a range of 21% to 21.5%.

Illumina's third-quarter revenue of $1.08 billion represented a 2% decrease year-over-year. The company noted that the NovaSeq X sequencing system continues to see strong adoption by customers.