Illumina cuts full-year guidance; shares fall 6% after hours
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Shares of Illumina (NASDAQ:ILMN) on Wednesday shed more than 5% in extended trading, after the genetic sequencing and testing company slashed its full year guidance despite shipping more sequencing instruments in Q2.
ILMN stock was down 5.8% to $173.79 after hours.
ILMN posted Q2 adjusted earnings per share of $0.32, smashing estimates by 30 cents. Revenue came in at $1.18B and beat expectations by $20M. Meanwhile, shipments of its NovaSeq X sequencing instruments came in at 109 compared to 67 in Q1. 
However, the San Diego, Calif.-based company cut its full year consolidated revenue growth guidance to about 1% from an earlier range of 7% to 10%. Moreover, ILMN now sees full year adjusted earnings per share of $0.75 to $0.95 from a prior forecast of $1.25 to $1.50. 
"Despite additional placements, we expect our second half revenue to be negatively impacted by customers remaining more cautious in their purchasing, a more protracted recovery in China, and a larger-than-expected temporary decline in high throughput consumables as customers transition to the NovaSeq X," ILMN interim CEO Charles Dadswell said in a statement.
The Q2 results and slashed full year guidance come a month after ILMN was slapped a record â¬432M fine by the European Commission for closing its acquisition of cancer test maker GRAIL without antitrust approval.
"Illumina (ILMN) plans to issue a guarantee and defer the payment of the fine pending the outcome of the appeal of the EU General Court's ruling that the European Commission has jurisdiction to review the GRAIL acquisition," the company said.
ILMN's reduced full year revenue guidance includes core Illumina revenue that is approximately flat with 2022 compared with an earlier outlook of growth of 6% to 9%. GRAIL revenue is still seen in the range of $90M to $110M.
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