Illumina Beats Q4 Sales Targets, Misses on EPS

Key Highlights:

* Revenue: $1.1 billion (2.1% above estimates)
* Non-GAAP EPS: $0.86 (6.9% below estimates)
* Full-year revenue guidance: $4.34 billion (1.2% below estimates)
* Full-year non-GAAP EPS guidance: $4.58 (2.7% above estimates)

Overview:

Genomics giant Illumina (ILMN) surpassed market expectations for revenue in the fourth quarter of 2024. However, its non-GAAP EPS fell short of analysts' forecasts. Despite the revenue beat, the company's full-year guidance missed estimates slightly.

Financials:

* Adjusted operating margin improved year-on-year to 19.7%.
* EPS rose to $0.86 from $0.14 in the same quarter last year but missed estimates.
* Diluted shares outstanding increased by 8.1% over the past five years.

Growth Dynamics:

* Long-term revenue growth has been mediocre at 4.1% annualized over the last five years.
* Organic revenue declined by 1.9% year-on-year over the past two years.
* Sell-side analysts project 2.4% revenue growth over the next 12 months.

Outlook:

* Illumina's revenue guidance for 2025 implies 0.2% growth compared to -2.3% in 2024.
* The company expects adjusted EPS growth of 9% in the coming year.
* Key strengths include organic revenue outperforming estimates and full-year EPS guidance exceeding expectations.
* Areas of concern include full-year revenue guidance falling slightly short and earnings missing forecasts.