Illumina Misses Revenue Estimates, Shares Fall
Illumina, a leading manufacturer of gene sequencing machines, has predicted 2025 revenue below Wall Street expectations, indicating a slowdown in demand for genetic tests and diagnostic tools.
As a result, Illumina's shares declined by nearly 4% in extended trading. Diagnostic tool companies like Illumina have faced reduced spending from biotech clients in recent years. However, interest rate cuts may improve funding conditions for biotechs.
Illumina's revenue forecast for 2025 ranges from $4.28 billion to $4.4 billion, with the midpoint falling short of analysts' consensus estimate of $4.39 billion.
The company emphasized that its forecast does not consider the potential impact of the recent announcement by China's Ministry of Commerce. Earlier this week, China placed Illumina on its "unreliable entity" list, which could result in fines and other sanctions.
Despite these concerns, Illumina's revenue in the fourth quarter of 2022 exceeded analysts' expectations, reaching $1.10 billion. On an adjusted basis, the company reported earnings per share of 95 cents, surpassing analysts' average estimate of 91 cents.