Illumina Q2 Revenues Grow 1 Percent

Illumina reported after the close of the market on Monday that its second quarter 2019 revenues grew 1 percent year over year.
 
For the three months ended June 30, 2019, Illumina recorded total revenues of $838 million compared to $830 million a year ago. The company's Q2 revenues came in above previously reported preliminary Q2 revenues of $835 million, but still fell short of the consensus Wall Street estimate of $866.2 million.
 
Illumina logged $704 million in product revenue, up 5 percent from $673 million in Q2 2018, and $134 million in service and other revenue, down 15 percent from $157 million a year ago.
 
"While our second quarter results clearly fell short of our expectations, we remain committed to leading innovation in genomics, and to enabling our global community of 6,300 customers who unlock more of the human genome each day in an effort to improve human health and, in many cases, save lives," Illumina President and CEO Francis deSouza said in a statement. "In addition to continued sequencing consumables growth, we are encouraged by the sequential and year-over-year growth in shipments across our high-, mid-, and low-throughput sequencing system portfolio, including a record number of NextSeq Dx systems, reflecting the growing clinical opportunity."
 
Illumina's Q2 net income was $296 million, or $1.99 per share, compared to $209 million, or $1.41 per share, in the year-ago period. On an adjusted basis, EPS was $1.35, beating analysts' consensus estimate for EPS of $1.34. Illumina noted that adjusted EPS excluded a $92 million unrealized gain from a strategic investment that completed an IPO.
 
Illumina's R&D expenses rose 10 percent to $166 million from $151 million, while its SG&A expenses grew about 3 percent to $202 million from $197 million.
 
The company finished the quarter with $1.94 billion in cash and cash equivalents and $1.23 billion in short-term investments.
 
As reported along with its preliminary earnings release, the company expects year-over-year revenue growth of 6 percent for FY 2019. The company also said today that it expects full-year adjusted EPS of $6.00  to $6.10. On average, analysts are expecting FY 2019 EPS of $6.38.
 
Except for acquisition-related expenses incurred during the first half of 2019, which are reflected in adjusted guidance, the guidance excludes any impact from the pending acquisition of Pacific Biosciences, which Illumina now expects to close in Q4 2019.