Illumina stock surged Friday, reversing an after-hours decline Thursday, after the biggest genomics company issued a lighter-than-expected earnings outlook for 2022.
For the year, the company now expects adjusted profit of $2.35 to $2.50 per share. That's well below expectations for $2.78 per share. On a year-over-year basis, earnings would tumble more than 58%. Illumina also posted a sales outlook that came up short.
The light outlook comes at a critical time for Illumina, which is trying to smooth over issues with its acquisition of Grail, a cancer-screening company. European regulators are scrutinizing the deal. Until the European Commission blesses the merger, Grail is being held as a separate company.
On today's stock market, Illumina stock surged 5.9% to 224.36. Late Thursday, shares collapsed almost 6%.
Illumina Stock Survives Light Outlook
During the September quarter, Illumina earned 34 cents per share, minus some items. Earnings fell almost 77%, but topped forecasts by four pennies. Sales inched 1% higher to $1.12 billion and were above calls for $1.11 billion, according to FactSet.
The lion's share of sales came from Illumina's core business. Grail, which initially spun off from Illumina several years ago, brought in $10 million in sales vs. $2 million in the year-ago period.
Illumina called for its core revenue to be flat this year, and for Grail to generate $55 million to $65 million in sales. All together, the guidance missed Illumina stock analysts' forecast for $4.71 billion in sales. Last year, Illumina reported $4.53 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
