Illumina Raises Q4 Revenue Outlook To $1.10 Billion, Exceeding Street Expectations; Sees Solid Margins

On Tuesday, Illumina, Inc. ILMN raised its fourth-quarter revenues outlook to $1.10 billion, compared with a prior view of $1.07 billion. The street view also stands at $1.072 billion. The current outlook represents 1% growth year over year.

The company’s full-year revenue for 2024 is approximately expected to be $4.33 billion versus the analyst consensus estimate of $4.304 billion, down 2% year over year. It previously expected it to fall 3% year over year.

For the fourth quarter of 2024, the company expects adjusted diluted earnings per share in the range of approximately 91 cents to 93 cents versus the street view of 91 cents.

For the full year 2024, the adjusted diluted EPS is projected to be between $4.12 and $4.14, versus the analyst consensus estimate of $4.13 (prior view: $4.05 – $4.15 ).

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The company expects a non-GAAP operating margin of approximately 19.7% for the fourth quarter of 2024 and around 21.3% for the full year (prior view: 21% – 21.5%).

For 2024, the company expects cash flow from operations of around $1.21 billion and free cash flow of about $1.07 billion.

For fiscal year 2025, it forecasts low single-digit revenue growth in constant currency, with reported revenue between $4.28 billion and $4.4 billion, a non-GAAP operating margin of approximately 23%, and a 10% growth in non-GAAP diluted EPS.

Yesterday, Illumina announced a collaboration with NVIDIA Corporation to enhance technology platforms for analyzing and interpreting multiomic data.

This partnership aims to speed up progress in clinical research, genomics AI development, and drug discovery. By combining Illumina’s sequencing and informatics tools with NVIDIA’s AI technology, the partnership seeks to improve drug discovery and clinical development.

Price Action: ILMN shares are trading lower by 3.94% to $138.54 at last check Tuesday.

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