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Illumina stock tanks as gene-sequencing company misses expectations and issues bleak outlook


Illumina Inc. shares sank 20% after hours Thursday after the gene-sequencing company swung to a loss in the second quarter, fell short of revenue expectations and revised its full-year outlook downward.

Francis deSouza, chief executive of Illumina
said in a statement that the quarterly results failed to meet the company’s own expectations because “challenges in a complex macroeconomic environment more than offset the growth we continue to see in sequencing runs on our platforms.”

Illumina reported a loss of $535 million, or $3.40 a share, compared with net income of $187 million, or $1.26 a share, in the year-ago period. Adjusted for $609 million in legal contingencies, plus selling, general and administrative expenses and other costs, earnings were 57 cents a share. Revenue rose to $1.16 billion from $1.13 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 64 cents a share on revenue of $1.22 billion.

The company said in a news release that it expects full-year revenue for 2022 to grow 4% to 5% from fiscal-year 2021, citing “ongoing negative impact of foreign exchange rates, customer lab expansion delays, and macroeconomic-driven conservatism around immediate capital and inventory commitments, including in Greater China.” Last quarter, the company said it expected 14% to 16% revenue growth for fiscal-year 2022.

Illumina also said it expects to post a per-share loss of $2.93 to $2.78 for the full year. Analysts had expected net income of $2.94 a share.

Shares of Illumina ended the regular session up slightly, 0.06%, at $227.44, before plunging in extended trading. They have declined 40% year to date, while the S&P 500 index

has fallen almost 12% during the same period. The company’s stock dropped sharply in June after it announced that its chief financial officer was leaving for Quest Diagnostics Inc.

Semiconductor companies have split into two groups — the resilient and the risky

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