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San Diego, California-based Illumina, Inc. (ILMN) is a life sciences company offering sequencing- and array-based solutions for genetic and genomic analysis. With a market cap of $19.2 billion, Illumina operates through Core Illumina and GRAIL segments. It is expected to announce its Q2 earnings after the market closes on Tuesday, August 6.
Ahead of the event, analysts expect Illumina to report a profit of $0.23 per share, down 28.1% from $0.32 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. Its EPS for the last reported quarter grew 12.5% to $0.09 and exceeded the consensus estimates by 200%.
Looking ahead to fiscal 2024, analysts expect Illumina to report an EPS of $1.38, up 60.5% from $0.86 in fiscal 2023. In fiscal 2025, its EPS is projected to grow 120.3% year over year to $3.04.
ILMN stock is down 13.5% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 14.5% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 10% returns over the same time frame.
ILMN stock took a 4.9% hit in the subsequent trading session following its Q1 earnings release on May 2. The company’s net loss amounted to $126 million, with revenues dipping 1% to $1.1 billion. Rising operating expenses sparked worries about its efficiency. Plus, since acquiring GRAIL in August 2021, Illumina grappled with legal troubles and operational discord, which dented its performance. But there is a silver lining – completing GRAIL’s divestiture in June allows Illumina to refocus on its core operations. The market’s reaction highlighted the tough road ahead, but the company is now better positioned to regain its footing.
The consensus opinion on Illumina stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 19 analysts covering the stock, nine recommend a “Strong Buy,” one advises a “Moderate Buy,” seven suggest a “Hold,” one advocates a “Moderate Sell,” and one says a “Strong Sell” rating.
The average target price for Illumina is $145.43, indicating a potential upside of 20.8% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
