DNA Sequencing Kit Provider Illumina's Q4 Earnings Edge Above Street Estimates, Works To Resolve GRAIL Quickly

Thursday, Illumina Inc ILMN reported fourth-quarter 2023 sales of $1.12 billion, up 4% Y/Y, beating the consensus of $1.09 billion.

The company reported adjusted EPS of $0.14, surpassing the consensus estimate of $0.02.

The company shipped 79 NovaSeq X instruments in the fourth quarter of 2023 and 352 instruments for fiscal year 2023.

Illumina decided to divest GRAIL in December, with terms to be finalized by the end of the second quarter of 2024.

The company signed an agreement with Janssen Research & Development, a unit of Johnson & Johnson JNJ.

This collaboration will be the first relating to the development of Illumina’s novel molecular residual disease assay, a whole-genome sequencing multi-cancer research solution that detects circulating tumor DNA.

“I’m pleased that in the fourth quarter, my first full quarter with the company, Illumina delivered results ahead of our expectations, driven by NovaSeq X instrument and consumables sales,” said Jacob Thaysen, CEO. 

“While our customers generally remain constrained in their purchasing, we are well-positioned for growth as market conditions improve. Illumina is focused on three key priorities to accelerate value creation: driving our top line, focusing on operational excellence, including boosting productivity, cost savings, and customer-focused innovation, and working to resolve GRAIL as quickly as possible.”

Guidance: For fiscal year 2024, Illumina expects Core Illumina revenue to be approximately flat compared to fiscal year 2023, and Core Illumina adjusted operating margin to be approximately 20%. 

While Illumina continues to move as quickly as possible to resolve GRAIL, the company is focusing its financial outlook on Core Illumina, as the specific timing and impact of the GRAIL divestment remains uncertain, the company said in its press release.

Also Next: Carl Icahn Escalates Boardroom Battle At Illumina, Seeks To Remove More Directors After Grail Divestiture.

Price Action: ILMN shares are down 2.38% at $139.93 on the last check Friday.