Core Insights - Illumina Inc. reported first-quarter 2025 adjusted earnings per share (EPS) of 97 cents, exceeding the Zacks Consensus Estimate by 1%, but down 1% year-over-year [1] - The company's GAAP EPS was 82 cents, reflecting an 86.4% increase year-over-year [1] Revenue Performance - Revenues for the first quarter amounted to $1.04 billion, a decrease of 1.4% year-over-year, but slightly above the Zacks Consensus Estimate by 0.2% [2] - The stock fell 2.2% in after-market trading following the earnings announcement [2] Segment Analysis - Core Illumina's sequencing service and other revenues totaled $142 million, down 5% year-over-year, primarily due to timing of strategic partnership revenues [3] - Sequencing consumable revenues reached $696 million, up 1% year-over-year, driven by high-throughput consumables [3] Margin and Expense Overview - Adjusted gross margin was 67.2%, an increase of 79 basis points year-over-year, attributed to a 5.5% decline in the cost of revenues [4] - Research and development expenses decreased by 25.7% year-over-year to $252 million, while SG&A expenses totaled $267 million, down 39.2% from the previous year [4] - Adjusted operating profit for the quarter was $181 million, compared to an operating loss of $63 million in the same quarter last year [4] Financial Position - At the end of Q1 2025, Illumina had cash and cash equivalents of $1.11 billion, slightly down from $1.13 billion at the end of Q4 2024 [5] - Cumulative net cash provided by operating activities was $240 million, compared to $77 million a year ago [5] 2025 Guidance - For 2025, Illumina expects Core Illumina revenues to decline by 1%-3% on a constant currency basis, revised from earlier low single-digit growth expectations [6] - The Zacks Consensus Estimate for 2025 revenues is currently $4.31 billion [6] - Non-GAAP diluted EPS is projected to be in the range of $4.20-$4.30, down from the previous estimate of $4.50-$4.65 [7] Key Developments - Illumina made significant announcements in Q1, including innovations in genomics, spatial transcriptomics, and collaborations with Broad Clinical Labs and the Broad Institute [8][9] - The company sequenced 250,000 whole genomes for the Alliance for Genomic Discovery initiative [9] Overall Assessment - Illumina's earnings and revenues beat estimates, with positive progress in the NovaSeq X transition among clinical customers [10] - Despite the positive aspects, both top and bottom lines showed year-over-year declines, reflecting the impact of evolving policy and geopolitical developments [11]

Core Insights - Illumina reported revenue of $1.04 billion for the quarter ended March 2025, reflecting a 3.3% decrease year-over-year, while EPS increased to $0.97 from $0.09 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.25%, and the EPS also surpassed the consensus estimate by 1.04% [1] Revenue Breakdown - Product revenue was $880 million, slightly above the average estimate of $872.04 million, marking a year-over-year increase of 0.5% [4] - Core Illumina service and other revenue totaled $161 million, below the average estimate of $175.08 million, representing a year-over-year decline of 6.9% [4] - Total product revenue for Core Illumina was $880 million, compared to the average estimate of $869.69 million, showing a year-over-year decrease of 0.3% [4] - Service and other revenue was $161 million, below the average estimate of $170.12 million, with a significant year-over-year decline of 19.5% [4] - Sequencing instruments revenue reached $109 million, slightly above the estimated $108.51 million, reflecting a year-over-year decrease of 0.9% [4] - Core Illumina instruments revenue was $112 million, in line with the average estimate of $112.06 million, showing a year-over-year decline of 1.8% [4] - Sequencing consumables revenue was $696 million, exceeding the estimated $679.85 million, with a year-over-year decrease of 0.3% [4] - Microarrays instruments revenue was $3 million, below the estimated $3.61 million, representing a significant year-over-year decline of 25% [4] - Microarrays consumables revenue was $72 million, slightly below the average estimate of $74.59 million, with a year-over-year increase of 1.4% [4] - Overall, Core Illumina revenue was $1.04 billion, surpassing the average estimate of $1.03 billion, but reflecting a year-over-year decline of 1.4% [4] - Core Illumina consumables revenue was $768 million, exceeding the estimated $748.87 million, with a year-over-year decrease of 0.1% [4] Stock Performance - Illumina's shares returned 0.1% over the past month, compared to a 11.3% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]