What's Going On With Illumina Stock Tuesday?

Illumina, Inc. ILMN shares are trading lower on Tuesday after China added the company to its unreliable entities list.

The Details: According to Reuters, the Ministry of Commerce placed Illumina as well as PVH Corp. PVH on its unreliable entities list after the companies took “discriminatory measures against Chinese enterprises.” Furthermore, the companies, “damaged” the rights and interests of Chinese corporations.

Since the companies have been added to the list, China may impose fines, revoke work permits for foreign staff, or take other punitive actions. China makes up approximately 7% of Illumina’s sales.

Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times, “When China adds any company to the Unreliable Entity List, it is very prudent and would not add any company to the list without evidence.”

What Else: Illumina is anticipated to release 2024 fiscal-year fourth-quarter earnings on Thursday after the market closes. Analysts estimate earnings per share of 92 cents and revenue of $1.08 billion, per data from Benzinga Pro.

In its preliminary earnings report, the company approximated revenue of $1.10 billion and earnings per share between 91 cents and 93 cents. Furthermore, the company announced cash flow from operations of about $1.21 billion and free cash flow of approximately $1.07 billion.

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ILMN Price Action: At the time of writing Illumina stock is trading 5.14% lower at $124.36, according to data from Benzinga Pro.

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