- Illumina’s Adjusted EPS for Q1 surpassed estimates with 9.0c versus 8.0c year over year, with a predicted 5.7c.
- The company has announced Revenue of $1.08 billion, a decrease of 1% compared to the same period last year, but still surpassing the estimate of $1.05 billion.
- Product revenue was reported at $876 million, indicating a drop of 5% year on year.
- Service and other revenues saw a significant increase of 21% year on year, clocking in at $200 million.
- The Adjusted gross margin has improved, with 66.5% in comparison to 64.7% in the previous year, exactly matching the estimate.
- Illumina’s cash and cash equivalents were reported at $1.11 billion, coming in below the estimate of $1.3 billion and showing a decrease of 26% year over year.
- The company stands by its fiscal year 2024 Core Illumina revenue guidance, expecting it to be flat as compared to 2023, and predicts a Core Illumina non-GAAP operating margin of approximately 20% for the fiscal year.
- The general opinion of the financial analysts is divided with 10 buys, 11 holds, and 3 sells on Illumina stock.
Illumina Inc on Smartkarma
Analyst coverage of Illumina Inc on Smartkarma reveals a mix of insights from Baptista Research. In a report titled “Illumina Inc: Will Its Market Dominance In Genetic Analysis Last In The Long Term? – Major Drivers,” the company is seen as having a successful 2023 but bracing for challenges in 2024 due to ongoing macroeconomic hurdles. With a consolidated revenue of approximately $1.12 billion in the fourth quarter and CEO Jacob Thaysen highlighting the success of the latest product NovaSeq X, there is optimism tempered by future uncertainties.
Another analysis by Baptista Research, titled “Illumina Inc: The Inside Story of Steady Revenues and Strategic Expansions! – Major Drivers,” discusses how Illumina showed mixed results in the previous quarter, with revenues falling below analyst consensus. Despite this, non-GAAP net income exceeded expectations, with Core Illumina sequencing consumables revenue declining while clinical sequencing consumables saw growth, balancing out the overall performance of the company.
A look at Illumina Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
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
Investors considering Illumina Inc for the long term may find the company’s outlook a mix of strengths and weaknesses. According to Smartkarma Smart Scores, Illumina scores moderately in Value, Resilience, and Momentum, indicating a balanced performance in these areas. However, the company lags behind in Dividend and Growth scores, suggesting potential areas for improvement. Illumina’s core focus on developing, manufacturing, and marketing genetic analysis systems positions it well in the genomics industry, catering to various research and commercial sectors.
Despite facing challenges in Dividend and Growth, Illumina Inc‘s overall outlook appears stable based on the combination of its Smartkarma Smart Scores. Investors seeking a company with solid Value, Resilience, and Momentum factors may find Illumina an attractive long-term investment option. As a leading provider of genomic analysis solutions, Illumina remains well-positioned to capitalize on the growing demand for genetic research and related services across academic, pharmaceutical, and biotechnology sectors.
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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