Shares of Illumina Tank After Company Slashes Revenue Expectations

Illumina shares were crashing on Thursday as the company cut its revenue expectations for the second quarter.

The San Diego-based company saw its shares drop over 16% in after-hours trading after the company said it expects $835 million in revenue for Q2. This is in comparison to $887.9 million in revenue expected, according to the Refinitiv consensus estimate.

The company, which is focused on sequencing and array-based solutions for genetic analysis, also cut its guidance for the full-year. Illumina now expects revenue to grow roughly 6% for the fiscal year. The previous projection had been around 13 to 14%.

Illumina cited that second quarter results were impacted by population genomics initiatives which did not close in the second half of June as expected. Weakness in the direct-to-consumer market was also another factor.

“We are obviously disappointed with our second quarter financial results. Our preliminary analysis suggests that these challenges are transitory and do not reflect a macro change to the fundamentals of our business,” said Francis deSouza, president and CEO of Illumina.

He added, “Despite our shortfall this quarter, we remain as enthusiastic about the long-term growth prospects for our markets as we have ever been, and are committed to setting the industry’s bar for consistency and execution in the dynamic and rapidly growing world of genomics.”

Illumina will be reporting full second-quarter results on July 29th.

Disclaimer: We have no position in Illumina, Inc. (NASDAQ: ILMN) have not been compensated for this article.