Illumina drops 23% as company blames macro factors for Q2 miss
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The shares of Illumina (NASDAQ:ILMN) fell ~23% in the post-market Thursday after the gene sequencing company fell short of expectations with its Q2 2022 financials, as the management attributed the underperformance to macro challenges.
"Our second quarter results did not meet our expectations as challenges in a complex macroeconomic environment more than offset the growth we continue to see in sequencing runs on our platforms," Chief Executive Francis deSouza remarked ahead of the earnings call at 5 p.m EST.
Revenue for the quarter rose ~3% YoY on a reported basis to $1.16B, indicating a ~5% decline from the preceding quarter, even as product revenue rose ~4% YoY to $1.0B
Meanwhile, the company swung to a net loss of $535M during the quarter compared to the $185M net income in Q2 2021, driven by $609M in legal contingencies.
The provision included an accrual of $453M for a potential fine from the European Commission related to its GRAIL acquisition and an estimated accrual of $156M for a settlement with the Chinese rival BGI in July 2022.
The management lowered the 2022 guidance for consolidated revenue growth and Core Illumina revenue growth to 4% - 5% and 3.5% to 4.5% from the previous estimates of 14% to 16% and 13% to 15%, respectively.
Illumina (ILMN) expects to record GAAP diluted loss per share $(2.93) to $(2.78) and non-GAAP diluted EPS of $2.75 to $2.90 for 2022 compared to previous forecast of $2.33 to $2.53 and $4.00 to $4.20, respectively. The company has lowered GRAIL revenue to $50M â $70M, down from the $70M â $90M estimated in May.