Illumina's Q3 Profits Hit By Impairment Of Almost $4B, Cuts Annual Guidance

Illumina Inc ILMN posted Q2 revenue of $1.12 billion, up 1% Y/Y and up 3% on a constant currency basis, almost in line with the consensus.
Non-GAAP diluted earnings per share of $0.34 compared to $1.45 a year ago, beating the consensus of $0.30.
"Our second quarter results did not meet our expectations as challenges in a complex macroeconomic environment more than offset the growth we continue to see in sequencing runs on our platforms," said Francis deSouza, CEO.
During the quarter, GAAP diluted loss per share of $(24.26) includes a goodwill impairment of $3.91 billion related to the GRAIL segment.
Guidance: For FY22, Illumina expects consolidated revenue to be flat to 1% Y/Y, down from a prior range of 4%-5%, primarily reflecting a decline in select research project sample volume, delayed purchases ahead of the upcoming availability of NovaSeq X and incremental foreign exchange headwinds.
The company forecasts adjusted EPS of $2.35-$2.50, down from previous guidance of 2.75-$2.90 and the consensus of $2.78
Core Illumina revenue growth is expected to be approximately flat from the fiscal year 2021. GRAIL revenue is now expected to be $55-$65 million, compared to the previous range of $50-$70 million.
Price Action: ILMN shares closed 3.74% lower at $204.00 during the premarket session on the last check Thursday.

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