ILMN Q4 Earnings Miss Estimates, Stock Dips in Aftermarket

Illumina Inc. ILMN reported fourth-quarter 2024 adjusted earnings per share (EPS) of 86 cents, which missed the Zacks Consensus Estimate of 92 cents by 6.5%. The bottom line was significantly above the year-ago quarter’s level of 14 cents. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The adjustments exclude the impact of GRAIL’s pre-acquisition net operating losses on GILTI, the utilization of U.S. foreign tax credits and the Pillar Two global minimum top-up tax, which became effective from the first quarter of 2024.Including one-time items, the company’s GAAP EPS was $1.17 against the year-ago reported loss of $1.11 per share.Full-year adjusted EPS was $2.45 compared with the year-ago level of 86 cents. The figure missed the Zacks Consensus Estimate by 40.7%.Following the earnings announcement, ILMN stock fell 4.9% at the after-market trading yesterday.Illumina’s RevenuesRevenues amounted to $1.10 billion, down 1.6% year over year (down 1% at CER). However, the top line beat the Zacks Consensus Estimate by 2.6%.Full-year revenues totaled $4.37 billion, down 2.8% from the 2023 level. The figure beat the Zacks Consensus Estimate by 1.6%. Illumina’s Segmental DetailsIllumina has one reportable segment — Core Illumina.Core Illumina’s revenues totaled $1.10 billion (up 1% year over year). The growth was due to the company’s high-throughput consumables business, NovaSeq X placements and encouraging uptake from clinical customers.Core Illumina sequencing service and other revenues totaled $151 million, down 1% year over year. Sequencing consumable revenues amounted to $698 million, up 2% year over year, primarily due to continued strong uptake in X consumables.The company’s GRAIL segment was spun off on June 24, 2024. Hence, GRAIL has no reportable impact on the fourth-quarter top line. MarginsThe adjusted gross margin (excluding amortization of acquired intangible assets) was 65.9%, up 587 basis points (bps) year over year.Research and development expenses decreased 24.9% year over year to $256 million. SG&A expenses totaled $279 million, down 42.5% from the year-ago level. The adjusted operating profit in the quarter was $193 million against the year-ago quarter’s operating loss of $152 million. Financial UpdateIllumina exited 2024 with cash and cash equivalents of $1.13 billion compared with $1.05 billion at the end of 2023.Cumulative net cash provided by operating activities at the end of the fourth quarter was $837 million compared with $478 million a year ago.Illumina’s 2025 GuidanceIllumina provided its outlook for 2025.The company expects full-year Core Illumina revenues to be in the range of $4.28-$4.40 billion. It expects constant currency revenue growth to be in the low single digits. ILMN expects Core Illumina's non-GAAP operating margin to be 23% in 2025. Illumina, Inc. Price, Consensus and EPS Surprise Illumina, Inc. price-consensus-eps-surprise-chart | Illumina, Inc. QuoteNon-GAAP diluted EPS is projected to be in the range of $4.50-$4.65 in 2025. The Zacks Consensus Estimate for full-year EPS is currently pegged at $4.42.Key AnnouncementsThroughout the fourth quarter, Illumina made headlines on many occasions. It collaborated with NVIDIA to enhance the analysis and interpretation of multiomic data. The company also collaborated with Regeneron and invested in the Truveta Genome Project to extend the DNA sequence-linked healthcare database to advance scientific innovation and healthcare delivery. Illumina launched pilot proteomics program with UK Biobank and biopharma collaborators to analyze 50,000 samples. Additionally, it announced the expansion of TruSight Oncology, the latest solution to enable comprehensive genomic profiling of tumors. Our TakeIllumina exited the fourth quarter on a mixed note, wherein earnings missed estimates but revenues beat the same. The company’s innovative solutions are facilitating the next wave of progress in genomics and multiomics. The expansion of gross margins is impressive. ILMN continues to navigate a challenging global macro environment where customers are still constrained in their purchasing decisions. However, the company achieved additional cost savings from greater manufacturing and logistics efficiencies, contributing more than $100 million in cost savings in 2024. ILMN’s Zacks Rank and Key PicksIllumina currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are Quest Diagnostics DGX, ResMed RMD and Cardinal Health CAH. Quest Diagnostics reported fourth-quarter 2024 adjusted EPS of $2.23, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.62 billion beat the Zacks Consensus Estimate by 1.9%. DGX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.DGX has an earnings yield of 5.9% compared with the industry’s 4.1%. The company beat on earnings in each of the trailing four quarters, the average surprise being 3.8%.ResMed, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%.RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.Cardinal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $1.93, which outpaced the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Illumina, Inc. (ILMN): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks