DNA Sequencing Firm Illumina Sees Strong Clinical Market Momentum, Stock Soars

Core Insights - Illumina Inc. reported better-than-expected third-quarter earnings, with adjusted earnings of $1.34 per share, surpassing the consensus estimate of $1.17 [2] - The company's revenue reached $1.084 billion, exceeding the consensus of $1.065 billion, remaining flat year-over-year on both reported and constant currency basis [3][4] Financial Performance - The performance reflects momentum in clinical markets, with sequencing consumables revenue growing at a high single-digit rate year-over-year [2] - Operating cash flow for the third quarter was $284 million, down from $316 million last year, while free cash flow was $253 million, compared to $284 million previously [5] Guidance and Future Outlook - Illumina raised its fiscal 2025 earnings guidance from $4.45-$4.55 per share to $4.65-$4.75 per share, against a consensus of $4.50 [6] - The company expects a constant currency revenue decline between -1.5% and -0.5%, improved from the previous range of -2.5% to -1.5% [6] - Revenue growth outside of China is anticipated to be between 0.5% and 1.5% on a constant currency basis, with no change from prior guidance at the midpoint [6] Market Reaction - Illumina shares were up 21.45% at $120.24 following the earnings report, indicating strong market confidence [7]