- Illumina increased its full-year adjusted EPS forecast to a range of $4.45 to $4.55, up from an earlier forecast of $4.20 to $4.30. The market had estimated $4.23.
- The company now anticipates its core adjusted operating margin to be between 22% and 22.5%, an increase from the previous forecast of 21.5% to 22%.
- Constant currency revenue growth is projected to be between -2.5% and -0.5%, an improvement from the previous forecast of -3% to -1%.
- For the second quarter, Illumina reported an adjusted EPS of $1.19, surpassing the estimate of $1.01.
- The company achieved revenue of $1.06 billion for the quarter, a 3% decrease year-over-year, but slightly above the estimated $1.05 billion.
- Product revenue came in at $912 million, a 1.6% decline year-over-year but exceeding the estimate of $883 million.
- Service and other revenue was $147 million, showing a significant 21% decrease year-over-year and below the estimate of $157.9 million.
- Illumina’s adjusted gross margin remained steady at 69.4%, beating the estimate of 67.6%.
- The company held $934 million in cash and cash equivalents, which was below the expected $1.28 billion.
Illumina Inc on Smartkarma
Analyst coverage of Illumina Inc on Smartkarma reveals a mix of viewpoints concerning the company’s recent performance and strategic decisions. Baptista Research‘s report, “Illumina Inc.: Tackling Global Headwinds With Strategic Market Diversification!“, shows optimism, highlighting the company’s resilience in meeting revenue and EPS targets amidst challenging economic conditions. Positive indicators such as strong performance in the NovaSeq X instruments signify effective execution in a difficult operating environment.
However, another report by Caixin Global takes a bearish stance, indicating that China’s ban on Illumina’s gene sequencers due to escalating trade sanctions poses a significant obstacle. This move, part of a broader geopolitical dispute, could impact Illumina’s market access and competitive position in the gene sequencing industry, potentially creating opportunities for domestic rivals to gain ground.
A look at Illumina Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Illumina Inc has a mixed outlook for the long term. The company scores well in terms of Momentum with a score of 5, indicating strong positive market momentum. This could suggest that the stock price has been on an upward trend and may continue to do so in the future. However, its Dividend score is low at 1, which means it may not be a top choice for dividend-seeking investors. When it comes to Value and Growth, Illumina Inc scores moderately at 2, suggesting that it may not be significantly undervalued or experiencing rapid growth. In terms of Resilience, the company scores a 3, indicating a moderate level of resilience to market fluctuations.
Illumina, Inc. is a company that develops, manufactures, and markets systems for genetic variation and biological function analysis on a large scale. Its product line serves various markets such as sequencing, genotyping, and gene expression for research institutions, pharmaceutical companies, academic institutions, and biotech firms. While the company is showing strong momentum in the market, its dividend offering is limited, and its value and growth outlooks are moderate. Overall, Illumina Inc‘s resilience score indicates a decent ability to weather market changes, which may provide some stability for investors over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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