Illumina Reports 41% Dip In Q1 Profits Despite 12% Jump in Sales, Reaffirms FY22 Guidance - Illumina (NASDAQ:ILMN)

Illumina Inc's ILMN Q1 FY22 revenues rose 12% Y/Y to $1.22 billion, in line with estimates.
Nearly all revenues came from the core Illumina business; GRAIL, Illumina's cancer liquid biopsy subsidiary, recorded revenues of $10 million.
Product revenue for the quarter totaled $1.07 billion, up 12%, and Service and other revenue amounted to $153 million, up 9%.
"Illumina maintained strong momentum in the first quarter, particularly across oncology therapy selection, genetic disease testing, and pathogen surveillance," Illumina CEO Francis deSouza said. "We saw record total orders and exited the quarter with record total backlog. GRAIL also continued to gain traction and has now entered more than 30 partnerships with health systems, employers, and insurers."
Related: Illumina Launches Multiple-Gene Diagnostic Test For Cancer Patients.
Adjusted EPS reached $1.07, beating the consensus Wall Street estimate of $0.90.
Reported net income fell 41.5% to $86 million.
GRAIL R&D expenses were $85 million, while its SG&A expenses were $58 million.
As of April 3, Illumina had $1.4 billion in cash and equivalents.
Guidance: As previously announced, Illumina expects Y/Y sales growth of 14% - 16% to $5.16 billion - $5.25 billion compared to the consensus of $5.23 billion.
The adjusted EPS is expected to be $4.00 - $4.20 (consensus of $4.15).
The company reaffirms that core Illumina revenue growth of 13% - 15%, with GRAIL revenue of $70 million - $90 million.
Price Action: ILMN shares closed 0.78% higher at $294.00 during after-hours trading on Thursday.

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