Illumina's Q4 Profit Falls Despite Topline Growth Of 26%

Illumina Inc ILMN reported Q4 revenues of $1.19 billion, +26% Y/Y, beating the consensus of $1.13 billion.

• Product revenues were $1.07 billion, up 28%, and service & other revenues were $133 million, up 9%.
• "We are seeing strength across our business as a growing number of patients around the world are accessing the life-saving benefits of genomics, from oncology therapy selection to genetic disease testing and pathogen surveillance," said Illumina CEO Francis deSouza. 
• "In addition, momentum for Grail's groundbreaking multi-cancer early detection blood test continues to accelerate," added Francis deSouza.
• Illumina's Q4 adjusted EPS was $0.75, beating analysts' consensus of $0.49 and down from $1.22 posted a year ago.
• The adjusted gross margin improved to 71.5% from 66.9%.
• The company finished Q4 with $1.3 billion in cash and equivalents.
• Guidance: Illumina expects FY22 revenue growth of 14% - 16%. At the J.P. Morgan Healthcare Conference, Illumina projected sales of $5.15 billion - $5.24 billion for FY22, compared to the consensus of $5.01 billion.
• It forecasts adjusted EPS of $4.00 - $4.20 (consensus $4.20).
• The company expects Core Illumina revenue growth of 13% - 15%. GRAIL revenue is expected to be $70 million - $90 million.
• Price Action: ILMN shares closed lower by 2.66% at $358.08 on Thursday.