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Illumina (ILMN) Posts Q1 Preliminary Results, Withdraws View

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Illumina, Inc. (ILMN - Free Report) has announced preliminary revenue results for first-quarter 2020 on Apr 14. The company is slated to release its full financial results for the period on Apr 30.

Per Illumina, the overall preliminary results for the first quarter of 2020 were robust but the second quarter is expected to be significantly affected by the coronavirus pandemic and the related disruptions. Following the announcement, its shares gained 2.9% to close at $297.88 yesterday.

In the to-be-reported quarter, Illumina expects a rise in total revenues of 1.4% on a year-over-year basis to $858 million, subject to quarter-end closing adjustments. The top line is expected to primarily benefit from strong sequencing consumable revenues. However, this is expected to be partly dented by the impact of the coronavirus outbreak, which included disrupted system sales toward the quarter-end. The Zacks Consensus Estimate for the metric is currently pegged at $832.2 million.

 


 

However, the company withdrew its 2020 revenue and earnings per share guidance as it is not in a position to estimate the extent of severity and duration of the outbreak. However, per Illumina, the current situation is a temporary one, which will not affect long-term sequencing adoption and demand.

Currently, Illumina is redirecting its focus on ensuring supply continuity for its customers, which include those performing critical clinical testing for patients. It is also supporting researchers, who are using sequencing to track transmission, study the evolution of the virus’ genome, and assess the impact of the effectiveness of diagnostics and therapies. Researchers are also using Illumina’s sequencing products to explore the possibilities of adopting surveillance to reduce the impact of future outbreaks of new infectious diseases.

Share Price Movement

The company has underperformed its industry over the past three months. The stock has slipped 8.6% compared with a 4.3% decline of the industry.

Zacks Rank & Key Picks

Illumina currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , National Vision Holdings, Inc. (EYE - Free Report) and Phibro Animal Health Corporation (PAHC - Free Report) .

ResMed has a projected long-term earnings growth rate of 14.4%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

National Vision’s long-term earnings growth rate is estimated at 10.7%. The company presently has a Zacks Rank #2.

Phibro’s long-term earnings growth rate is estimated at 2.1%. It currently carries a Zacks Rank #2.

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