Illumina, Inc. (NASDAQ:ILMN) announced estimated third quarter revenue of approximately $550 million, a 14% increase compared to $481 million in the third quarter of 2014 and 18% growth on a constant currency basis. This estimate, which is unaudited, is based on management’s preliminary financial analysis.
“Demand for sequencing consumables and the HiSeq family of instruments remained strong during the quarter, while instrument sales in the desktop family underperformed our expectations,” stated Jay Flatley, CEO. “Geographically, we were disappointed with instrument sales inEurope and continued weakness in the Asia-Pacific region. Despite this 3% shortfall to expectations, our competitive position and product development pipeline are as strong as ever. The new markets we are targeting are enormous, and will support significant revenue growth forIllumina in 2016 and beyond, consistent with our prior long-term guidance.”
Financial outlook and guidance
For fiscal 2015, the company now projects approximately 18% total revenue growth (21% on a constant currency basis, assuming current exchange rates) and fourth quarter revenue of approximately $570 million. Updated GAAP and non-GAAP EPS guidance will be provided when reporting third quarter results on October 20, 2015. (Original Source)
In reaction, shares of Illumina are down 15.43% to $137.24 in after-hours trading. ILMN has a 1-year high of $242.37 and a 1-year low of $145.12. The stock’s 50-day moving average is $194.05 and its 200-day moving average is $202.73.
On the ratings front, Illumina has been the subject of a number of recent research reports. In a report issued on October 2, Cowen analyst Doug Schenkel maintained a Buy rating on ILMN, with a price target of $220, which represents a potential upside of 33.3% from where the stock is currently trading. Separately, on October 1, Leerink Swann’s Dan Leonard downgraded the stock to Hold and has a price target of $185.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Doug Schenkel and Dan Leonard have a total average return of 7.7% and 1.8% respectively. Schenkel has a success rate of 52.6% and is ranked #1171 out of 3764 analysts, while Leonard has a success rate of 45.7% and is ranked #1747.
Overall, 2 research analysts have assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $220.00 which is 33.3% above where the stock opened today.
Illumina Inc providessequencing-and array-based solutions for genetic analysis. Itsproducts enabled researchers to explore DNA, helping them create the first map of gene variations associated with health, disease, and drug response.