Illumina, Inc

Company Description

Illumina Inc. is a leading developer of next-generation tools for the large-scale analysis of genetic variation and function. The company's tools will provide information that could be used to improve drugs and therapies, customize diagnoses and treatment, and cure disease.

Illumina is developing a comprehensive line of products that can address the scale of experimentation and the breadth of functional analysis required to achieve the goals of molecular medicine.

Revenue Jumps 36%

On Apr 21 the company reported first-quarter results that included revenue of $166 million, up 36% from $122 million. Illumina also improved its gross margin to 66.4%, up from 60.2%.

Earnings per share met expectations of 19 cents. However, net income was up 76% year-over-year to $18.8 million.

Strong Guidance

Illumina is projecting a 22% to 26% growth in annual revenue, based on the strength of the first quarter. The company expects to bring in between $700 million and $720 million.

Analysts React

Following the press release, analysts promptly raised estimates. The consensus for 2009 is now $1.18, up from 90 cents before the announcement. Estimates for 2010 are now $1.21, up from $1.16.

These projections will result in 87% year-over-year growth for 2009 and 2% in 2010. Illumina has beat analysts expectations twice in the past 4 quarters.

The Chart

Shares of ILMN could be forming a nice consolidation pattern that could result in a very nice breakout. Take a look at the chart below.