Financial Data and Key Metrics Changes - In Q4 2024, Illumina reported revenue of $1.1 billion, reflecting approximately 1% growth year-over-year, driven primarily by consumables [15][34] - Non-GAAP gross margins for Q4 were 67.4%, an increase of 270 basis points year-over-year, attributed to operational excellence initiatives and growth in consumables [37] - Non-GAAP EPS for Q4 was $0.95, exceeding expectations due to higher revenue and a lower tax rate [39] Business Line Data and Key Metrics Changes - Sequencing consumables revenue was $698 million, growing approximately 2% year-over-year, driven by the transition to NovaSeq X [35] - Sequencing instruments revenue declined 3% year-over-year to $155 million, primarily due to a decrease in mid-throughput shipments [36] - Total sequencing GB output grew over 30% year-over-year, indicating robust growth from both clinical and research customers [36] Market Data and Key Metrics Changes - Revenue from the Americas, which constitutes more than half of Illumina's business, increased by 3% year-over-year [17] - EMEA revenue decreased by 10%, while Greater China revenue increased by 1% [17] Company Strategy and Development Direction - Illumina aims to return to revenue growth in 2025 and achieve high single-digit growth by 2027, focusing on customer collaboration, continuous innovation, and operational excellence [13][18] - The company is transitioning to the NovaSeq X series, with expectations that over 75% of high-throughput gigabases will be shipped on this platform by mid-2025 [44] - Illumina is enhancing partnerships, such as with NVIDIA, to leverage AI tools for better data analysis and interpretation [19][144] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the evolving political and macroeconomic environment, particularly regarding research funding and the recent announcements from China [27][42] - For 2025, Illumina expects low single-digit revenue growth and a non-GAAP operating margin of approximately 23%, reflecting a 170 basis points improvement from 2024 [28][46] - The company remains committed to supporting global customers and advancing scientific discovery through genomics [28] Other Important Information - Illumina achieved over $100 million in cost savings in 2024 through improved manufacturing and logistics efficiencies [26] - The company ended Q4 with approximately $1.22 billion in cash and short-term investments, indicating a strong cash generation profile [41] Q&A Session Summary Question: Update on China revenue mix and guidance implications - Management acknowledged that China represents about 7% of total revenue and is assessing the situation, but did not provide detailed financials [57][58] Question: Insights on Q1 revenue cadence - Management indicated that top-line growth is expected to be stronger in the second half of the year, driven by the NovaSeq X transition [60] Question: Volume growth and pricing dynamics - Management noted that volume growth is expected to remain strong, with mid-20% growth anticipated in the longer term [69] Question: Clarification on clinical transition and gigabyte shipments - Management stated that approximately 50% of clinical volume has transitioned to the NovaSeq X series, with expectations for further growth [77] Question: Margin protection strategies amid China uncertainties - Management is exploring all opportunities for margin expansion and operational leverage, aiming for 170 basis points of margin improvement year-over-year [91] Question: R&D investment strategy - Management confirmed that R&D spending will remain below $1 billion per year, focusing on optimizing costs and driving innovation [149]

For the quarter ended December 2024, Illumina (ILMN) reported revenue of $1.1 billion, down 1.6% over the same period last year. EPS came in at $0.86, compared to $0.14 in the year-ago quarter.The reported revenue represents a surprise of +2.64% over the Zacks Consensus Estimate of $1.08 billion. With the consensus EPS estimate being $0.92, the EPS surprise was -6.52%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expec ...

Illumina (ILMN) came out with quarterly earnings of $0.86 per share, missing the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.52%. A quarter ago, it was expected that this genetic testing tools company would post earnings of $0.87 per share when it actually produced earnings of $1.14, delivering a surprise of 31.03%.Over the last four quarter ...

Revenue Performance - Q4 2024 revenue of approximately $1.10 billion, up 1% from Q4 2023[4] - Full-year 2024 revenue of approximately $4.33 billion, down 2% from 2023[4] - Fiscal year 2025 guidance: constant currency revenue growth in the low single digits, with reported revenue expected between $4.28 billion and $4.4 billion[4] Operating Margin - GAAP operating margin of 16.7% for Q4 2024 and 34.2% for full-year 2024[4] - Non-GAAP operating margin of 19.7% for Q4 2024 and 21.3% for full-year 2024[4] - Non-GAAP operating margin expected to be approximately 23% for fiscal year 2025[4] Earnings Per Share (EPS) - GAAP diluted EPS of $0.77 - $0.79 for Q4 2024 and $5.65 - $5.67 for full-year 2024[4] - Non-GAAP diluted EPS of $0.91 - $0.93 for Q4 2024 and $4.12 - $4.14 for full-year 2024[4] - Non-GAAP diluted EPS growth expected to be approximately 10% for fiscal year 2025[4] Cash Flow - Free cash flow of approximately $1.07 billion for 2024[4]

Genomic sequencing specialist Illumina (ILMN -5.26%) was something of a victim in the U.S.-China trade spat on Tuesday. The government of the sprawling Asian nation placed the U.S. company on a blacklist, and given the size and power of that economy, investors weren't happy about the news. They traded out of Illumina to leave it with a more than 5% price decline, on a day when the S&P 500 (^GSPC 0.72%) landed in positive territory with a 0.7% increase.Caught in the middleChina's "blacklist of entities" now ...

Wall Street analysts forecast that Illumina (ILMN) will report quarterly earnings of $0.91 per share in its upcoming release, pointing to a year-over-year increase of 550%. It is anticipated that revenues will amount to $1.08 billion, exhibiting a decline of 4.1% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estim ...

Core Viewpoint - Illumina is expected to report a year-over-year increase in earnings despite a decline in revenues, with the consensus outlook indicating a significant earnings surprise potential [1][3][11]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $0.91 per share, reflecting a year-over-year increase of +550%, while revenues are projected to be $1.08 billion, down 4.1% from the previous year [3][17]. - The earnings report is scheduled for release on February 6, 2025, and could influence stock movement based on whether the results exceed or fall short of expectations [2][12]. Estimate Revisions - The consensus EPS estimate has been revised 0.84% higher in the last 30 days, indicating a positive reassessment by analysts [4][10]. - Illumina's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.11%, suggesting a strong likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise History - Illumina has a history of exceeding consensus EPS estimates, having beaten expectations in the last four quarters, including a +31.03% surprise in the most recent quarter [12][13]. - The company's past performance in matching or exceeding estimates may influence future earnings expectations [12]. Industry Comparison - GSK, another player in the biomedical and genetics industry, is expected to report earnings of $0.53 per share, indicating a year-over-year decline of -26.4%, with revenues projected at $10 billion, unchanged from the previous year [17][18]. - GSK's Earnings ESP is -9.86%, combined with a Zacks Rank of 4 (Sell), making it challenging to predict an earnings beat [18].

Core Insights - Illumina is well-positioned to continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates significantly in the last two quarters [1][2] - The company reported earnings of $1.14 per share for the last quarter, exceeding the Zacks Consensus Estimate of $0.87 per share by 31.03%, and previously reported earnings of $0.36 per share against an estimate of $0.12 per share, resulting in a 200% surprise [2] Earnings Performance - Illumina has an average earnings surprise of 115.52% over the last two quarters, indicating strong performance [1] - Recent estimates for Illumina have been revised upwards, contributing to a positive Earnings ESP of +1.94%, suggesting bullish sentiment among analysts regarding the company's earnings prospects [3][6] Predictive Metrics - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data indicating that nearly 70% of stocks with this combination produce positive surprises [4][6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which are often more accurate [5] Upcoming Earnings Report - Illumina's next earnings report is expected to be released on February 6, 2025, and the current positive indicators suggest a favorable outlook for the company [6]

Illumina, Inc. (ILMN) has announced a collaboration with NVIDIA (NVDA) to advance technology platforms for analyzing and interpreting multiomic data. By combining advancements in artificial intelligence (AI) with multiomic data at scale, the partnership seeks to optimize the analysis of vast amounts of data involved in multiomic research.The latest development aims to accelerate progress in clinical research, genomics AI development and drug discovery.ILMN Stock’s Trend in Response to the NewsFollowing the ...

Key Points Company and Industry Overview - **Company**: Illumina, Inc. (NASDAQ: ILMN) - **Industry**: Life Science Tools and Diagnostics - **Event**: 43rd Annual JPMorgan Healthcare Conference Call - **Date**: January 14, 2025 - **Time**: 12:00 PM ET - **Participants**: Jacob Thaysen (CEO), Ankur Dhingra (CFO), Rachel Vatnsdal (JPMorgan) - **Duration**: 40 minutes (20 minutes presentation, 20 minutes Q&A) - **Focus**: Business overview, financial results, strategic direction, and future outlook Core Points and Arguments - **Business Growth**: Illumina has been pioneering next-generation sequencing (NGS) technology for over 25 years, making it a foundational tool in genomic research and clinical applications worldwide. - **Global Strength**: Illumina is operating from a position of global strength, with significant market presence and influence. - **2024 Results**: Preliminary Q4 and full year 2024 results will be covered, along with outlook for 2025. - **New Strategy**: Illumina is shifting its focus from cost per gigabase to providing the highest quality insights at the lowest end-to-end cost. - **Excitement for Future**: The company is incredibly excited about the path ahead and the opportunities it presents. Other Important Points - **Forward-Looking Statements**: The presentation includes forward-looking statements and non-GAAP measures, which are detailed in Illumina's SEC filing. - **Presentation Structure**: The presentation will cover four main areas: business overview, financial results, strategic direction, and future outlook. - **Q&A Session**: Approximately 20 minutes of the session will be dedicated to answering questions from participants.