Illumina's Q2 Rev Disappoints

Illumina Inc. (ILMN - Snapshot Report) said late Wednesday that second-quarter revenue will be lower than its own guidance, sending shares down by more than 11% today.

The company now expects to report sales of about $161 million, compared to its previous outlook of $168 million to $173 million.

Illumina cited lower foundation funding in a few key accounts, coupled with order delays linked to stimulus funding under the American Recovery & Reinvestment Act (ARRA), as reasons for the lower-than-expected performance.

The genetic analysis instrument producer also widened its full-year revenue outlook to between $690 million and $720 million, compared to the previous forecast of $700 million to $720 million.

The company, however, said it expects stimulus funding to have a positive impact on fourth-quarter and 2010 results.

Meanwhile, the consensus forecast for the company's full-year earnings has moved down a penny over the past month to 89 cents per share.

ILMN, a Zacks #3 Rank ("Hold") stock, is trading on extraordinarily high volume of approximately 9.4 million, compared to the average daily volume of about 1.4 million.