Illumina shares plunge as it cuts Q1 outlook
pharmafile | April 20, 2016 | News story | Research and Development, Sales and Marketing | Financial, Illumina, Share price, Shares, outlook, revenue, stock market
Shares in Illumina (Nasdaq: ILMN) plunged after the company cut its revenue estimates for the first quarter based on low sales in Europe.
The company’s shares dropped 24% to $135.46 on the Nasdaq Tuesday as it forecast revenues of $572 million, well below the $596 million originally expected on the back of weak device sales.
The maker of gene-sequencing machines said it sees 2016 revenue growth of 12%, the slowest in four years.
Chief Executive Jay Flatley said: “Our first quarter results fell short of expectations largely due to lower than expected sales of HiSeq 2500, 3000 and 4000 instruments. Despite this slow start in Q1, we anticipate that our Americas and Asia Pacific regions will meet our expectations for the full year, but that Europe will underperform. As a result, we now project approximately 12% revenue growth for fiscal 2016. Given the disappointing outlook in Europe, we have made management changes in the region and plan to implement a program of actions to achieve our goal of delivering the robust growth we believe the market can support.”
Illumina makes tech platforms which are used for genetic sequencing and other genome-related analytic services.
In January, Illumina launched a new company called Grail to research cancer screening from a simple blood test. Grail, the company said will develop a pan-cancer screening test by directly measuring circulating nucleic acids in blood, aided by Illumina’s sequencing technology.
Grail is majority held by Illumina with investors including Bezos Expeditions, Bill Gates and Sutter Hill Ventures.
Anjali Shukla
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