Illumina's Q3 Profits Hit By Impairment Of Almost $4B, Cuts Annual Guidance

  • Illumina Inc ILMN posted Q2 revenue of $1.12 billion, up 1% Y/Y and up 3% on a constant currency basis, almost in line with the consensus.
  • Non-GAAP diluted earnings per share of $0.34 compared to $1.45 a year ago, beating the consensus of $0.30.
  • "Our second quarter results did not meet our expectations as challenges in a complex macroeconomic environment more than offset the growth we continue to see in sequencing runs on our platforms," said Francis deSouza, CEO.
  • During the quarter, GAAP diluted loss per share of $(24.26) includes a goodwill impairment of $3.91 billion related to the GRAIL segment.
  • Guidance: For FY22, Illumina expects consolidated revenue to be flat to 1% Y/Y, down from a prior range of 4%-5%, primarily reflecting a decline in select research project sample volume, delayed purchases ahead of the upcoming availability of NovaSeq X and incremental foreign exchange headwinds.
  • The company forecasts adjusted EPS of $2.35-$2.50, down from previous guidance of 2.75-$2.90 and the consensus of $2.78
  • Core Illumina revenue growth is expected to be approximately flat from the fiscal year 2021. GRAIL revenue is now expected to be $55-$65 million, compared to the previous range of $50-$70 million.
  • Price Action: ILMN shares closed 3.74% lower at $204.00 during the premarket session on the last check Thursday.
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