Illumina, Inc. (NASDAQ:ILMN) Q2 2024 Earnings Conference Call August 6, 2024 4:30 PM ET Company Participants Salli Schwartz - Vice President of Investor Relations Jacob Thaysen - Chief Executive Officer Ankur Dhingra - Chief Financial Officer Conference Call Participants Vijay Kumar - Evercore ISI Conor McNamara - RBC Capital Markets Patrick Donnelly - Citi Doug Schenkel - Wolfe Research Dan Arias - Stifel Tycho Peterson - Jefferies Subha Nambi - Guggenheim Securities Puneet Souda - Leerink Partners Sung Ji ...

For the quarter ended June 2024, Illumina (ILMN) reported revenue of $1.11 billion, down 5.4% over the same period last year. EPS came in at $0.36, compared to $0.32 in the year-ago quarter.The reported revenue represents a surprise of +1.31% over the Zacks Consensus Estimate of $1.1 billion. With the consensus EPS estimate being $0.12, the EPS surprise was +200.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

Illumina (ILMN) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 200%. A quarter ago, it was expected that this genetic testing tools company would post earnings of $0.03 per share when it actually produced earnings of $0.09, delivering a surprise of 200%.Over the last four quarters, t ...

Revenue and Financial Performance - Core Illumina revenue for Q2 2024 was $1.09 billion, down 6% from Q2 2023 and up 3% from Q1 2024[2] - Total revenue for Q2 2024 was $1.112 billion, a decrease from $1.176 billion in Q2 2023[26] - Core Illumina revenue for the six months ended June 30, 2024 was $2.148 billion, a 4% decrease compared to $2.235 billion in the same period last year[33] - Consolidated revenue for the three months ended June 30, 2024 was $1.112 billion, a 5% decrease compared to $1.176 billion in the same period last year[33] - Product revenue for Q2 2024 was $927 million, a decline from $1.001 billion in Q2 2023[26] - Service and other revenue increased to $185 million in Q2 2024, up from $175 million in Q2 2023[26] - Exchange rate effects negatively impacted consolidated revenue by $5 million for the three months ended June 30, 2024[33] - Hedge gains positively impacted consolidated revenue by $4 million for the three months ended June 30, 2024[33] Operating Margins and Profitability - Core Illumina GAAP operating margin for Q2 2024 was 40.5%, with a non-GAAP operating margin of 22.2%[2] - Core Illumina non-GAAP operating margin guidance for fiscal year 2024 was raised to a range of 20.5% to 21%[2] - Core Illumina's Non-GAAP operating profit for the three months ended June 30, 2024, was $242 million, or 22.2% of revenue, while consolidated Non-GAAP operating profit was $84 million, or 7.6% of revenue[44] - Core Illumina's GAAP gross profit for the three months ended June 30, 2024, was $743 million, representing 68.0% of revenue, while Non-GAAP gross profit was $758 million, or 69.4% of revenue[44] - Core Illumina's GAAP gross profit for the three months ended July 2, 2023, was $760 million, or 65.5% of revenue, while Non-GAAP gross profit was $777 million, or 67.0% of revenue[47] - Core Illumina's GAAP gross profit is $1,436 million, representing 66.9% of revenue, while Non-GAAP gross profit is $1,466 million, or 68.3% of revenue[49] - Core Illumina's GAAP gross profit for the six months ended July 2, 2023 is $1,446 million, or 64.7% of revenue, while Non-GAAP gross profit is $1,478 million, or 66.1% of revenue[51] - Non-GAAP gross profit is a key measure of the effectiveness and efficiency of manufacturing processes, product mix and average selling prices[52] Earnings Per Share (EPS) - Core Illumina GAAP diluted earnings per share for Q2 2024 was $0.41, and non-GAAP diluted earnings per share was $1.09[2] - Core Illumina non-GAAP diluted earnings per share guidance for fiscal year 2024 was introduced in the range of $3.80 to $3.95[2] - Non-GAAP diluted earnings per share for the three months ended June 30, 2024 was $0.36, compared to $0.32 in the same period last year[36] Net Income and Loss - Net loss for Q2 2024 was $1.988 billion, compared to a net loss of $234 million in Q2 2023[26] - GAAP net loss for the three months ended June 30, 2024 was $1.988 billion, compared to a net loss of $234 million in the same period last year[37] - Non-GAAP net income for the three months ended June 30, 2024 was $57 million, compared to $50 million in the same period last year[37] - Core Illumina GAAP net income for the six months ended June 30, 2024 was $135 million[41] - Core Illumina Non-GAAP net income for the six months ended June 30, 2024 was $329 million[41] Impairment Charges - The company recognized $1,466 million in goodwill and $420 million in intangible asset impairment related to the GRAIL segment in Q2 2024[5] - Goodwill and intangible impairment charges totaled $1.886 billion in Q2 2024, significantly impacting the operating loss[26] - Goodwill and intangible impairment charges for the three months ended June 30, 2024 were $1.886 billion[37] - GAAP goodwill and intangible impairment is $1,889 million, or 86.3% of revenue, primarily driven by a $1,466 million goodwill impairment[49] Cash Flow and Liquidity - Free cash flow for Q2 2024 was $48 million, compared to $58 million in the prior year period[6] - Free cash flow for Q2 2024 was $48 million, down from $58 million in Q2 2023[29] - Cash and cash equivalents decreased to $920 million as of June 30, 2024, from $1.048 billion at the end of 2023[22] Assets and Equity - Total assets decreased to $6.081 billion as of June 30, 2024, from $10.111 billion at the end of 2023[22] - Stockholders' equity dropped to $1.436 billion as of June 30, 2024, from $5.745 billion at the end of 2023[23] Research and Development (R&D) Expenses - Research and development expenses were $325 million in Q2 2024, down from $358 million in Q2 2023[26] - Core Illumina's GAAP R&D expense for the three months ended June 30, 2024, was $241 million, or 22.1% of revenue, while Non-GAAP R&D expense was $325 million, or 29.2% of revenue[44] - Core Illumina's GAAP R&D expense for the three months ended July 2, 2023, was $274 million, or 23.6% of revenue, while Non-GAAP R&D expense was $345 million, or 29.3% of revenue[47] - GAAP R&D expense is $660 million, or 30.2% of revenue, while Non-GAAP R&D expense is $658 million, or 30.1% of revenue[49] - GAAP R&D expense for the six months ended July 2, 2023 is $699 million, or 30.9% of revenue, while Non-GAAP R&D expense is $685 million, or 30.3% of revenue[51] Selling, General, and Administrative (SG&A) Expenses - Core Illumina's GAAP SG&A expense for the three months ended June 30, 2024, was $60 million, or 5.5% of revenue, while Non-GAAP SG&A expense was $358 million, or 32.2% of revenue[44] - Core Illumina's GAAP SG&A expense for the three months ended July 2, 2023, was $371 million, or 31.9% of revenue, while Non-GAAP SG&A expense was $355 million, or 30.2% of revenue[47] - GAAP SG&A expense is $588 million, or 26.9% of revenue, while Non-GAAP SG&A expense is $707 million, or 32.3% of revenue[49] - GAAP SG&A expense for the six months ended July 2, 2023 is $839 million, or 37.1% of revenue, while Non-GAAP SG&A expense is $697 million, or 30.8% of revenue[51] Tax Provisions - Q2 2024 GAAP tax provision was $12 million, representing a decrease of 0.6% compared to the previous period[57] - Non-GAAP tax provision for Q2 2024 was $16 million, accounting for 22.3% of the total[57] - YTD 2024 GAAP tax provision was $28 million, reflecting a decrease of 1.4%[57] - Non-GAAP tax provision for YTD 2024 was $28 million, representing 28.8% of the total[57] - Q2 2024 Core Illumina GAAP tax provision was $35 million, accounting for 35.0% of the total[60] - Non-GAAP tax provision for Core Illumina in Q2 2024 was $55 million, representing 24.2% of the total[60] - YTD 2024 Core Illumina GAAP tax provision was $80 million, accounting for 37.3% of the total[60] - Non-GAAP tax provision for Core Illumina YTD 2024 was $108 million, representing 24.9% of the total[60] - Q2 2024 included $104 million in incremental non-GAAP tax expense[57] - YTD 2024 included $117 million in incremental non-GAAP tax expense[57] Corporate Transactions - The company completed the spin-off of GRAIL into a new public company on June 24, 2024[2] - The company acquired Fluent Biosciences, developer of an emerging and highly differentiated single-cell technology[11] Operating Loss and Profit - Consolidated GAAP operating loss for the three months ended June 30, 2024, was $(1,637) million, or (147.2)% of revenue, primarily due to a goodwill and intangible impairment of $1,886 million[44] - Consolidated GAAP operating loss for the three months ended July 2, 2023, was $(88) million, or (7.5)% of revenue, while Non-GAAP operating profit was $82 million, or 7.0% of revenue[47] - Consolidated GAAP operating loss is $(1,749) million, or (79.9)% of revenue, while Non-GAAP operating profit is $117 million, or 5.4% of revenue[49] - Consolidated GAAP operating loss for the six months ended July 2, 2023 is $(152) million, or (6.7)% of revenue, while Non-GAAP operating profit is $103 million, or 4.5% of revenue[51]

Core Illumina revenue of $1.09 billion for Q2 2024, down 6% from Q2 2023 (down 6% on a constant currency basis) and up 3% from Q1 2024Core Illumina GAAP operating margin of 40.5% and non-GAAP operating margin of 22.2% for Q2 2024Core Illumina GAAP diluted earnings per share of $0.41 and non-GAAP diluted earnings per share of $1.09 for Q2 2024Lowered fiscal year 2024 Core Illumina revenue guidance to decline 2% to 3% (down 1.5% to 2.5% in constant currency) from 2023Raised Core Illumina non-GAAP operating ma ...

The upcoming report from Illumina (ILMN) is expected to reveal quarterly earnings of $0.23 per share, indicating a decline of 28.1% compared to the year-ago period. Analysts forecast revenues of $1.1 billion, representing a decrease of 6.7% year over year.The current level reflects an upward revision of 54.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Ahead ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Illumina (ILMN) , which belongs to the Zacks Medical - Biomedical and Genetics industry.This genetic testing tools company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 750%.For the last reported quarter, Illumina came out with earnings of $0.09 per ...

Shares of Illumina (ILMN) have gained 5.5% over the past four weeks to close the last trading session at $114.49, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $145.43 indicates a potential upside of 27%.The mean estimate comprises 21 short-term price targets with a standard deviation of $36.38. While the lowest estimate of $100 indicates a 12.7% decline from the current price ...

SAN DIEGO, July 18, 2024 /PRNewswire/ -- As Illumina, Inc. (NASDAQ: ILMN) previously announced on June 24, the company will present a Strategy Update on Tuesday, August 13, 2024 starting at 8:00am Pacific Time. The event will feature presentations by members of Illumina's executive team and conclude with a Q&A session.Webcast DetailsThe webcast can be accessed through the Events & Presentations section of Illumina's Investor Relations website at investor.illumina.com. We recommend that participants pre-regi ...

Illumina (ILMN) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a c ...