Illumina, Inc. ($ILMN) Earnings (Q2 FY22)

 Illumina, Inc. ($ILMN) Earnings and Opinion:


Illumina is a company in the Healthcare sector and operates in the Diagnostics and Research industry. The company provides sequencing and array-based solutions for genetic and genomic analysis. Illumina was incorporated in 1998 and is currently based in San Diego, California. The company made its debut on the public trading market in 2000.

Illumina Earnings Results:

  • Revenues of $1.16B missing expectations of $1.22B
  • Product revenue of $1.006B missing expectations of $1.074B
  • Service revenue of $156M beating expectations of $148M
  • Gross Profit of $807M missing expectations of $854M
  • Adjusted EPS of $0.57 missing expectations of $0.64M
Opinion:
Illumina is currently getting slammed after hours. The stock is down over 15% after reporting earnings after the closing bell today. The main reason for the fall is credited to the loss the company suffered in this recent quarter. The missed expectations in a bunch of important categories and were only able to beat consensus estimates in the service revenue category. They also cut guidance for the rest of the fiscal year which has caused investors to grow a little nervous. I am not an expert on this field, nor have I ever really heard about this company. However, I can see that the stock price is pretty healthy in comparison to competition. In terms of valuation though, Illumina is trading at a 51 P/E ratio and a 7.68 P/S ratio. Both of these are extremely high and you should probably wait until the value drops if you're looking to purchase. They look to have some solid margins and really good revenue growth however. Maybe this one quarter could just be a false sense of how effective the gene-sequencing company is. I am going to hold off on this one right now though. I have never been to crazy on the healthcare side of things and think there's better ways to invest your money right now.


*Information from CMLVIZ, Yahoo Finance and Consensus Gurus

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