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Illumina ( ILMN ) plummeted in after-hours trading Monday when the genomics giant announced weak preliminary Q1 revenue and cut its full-year outlook. Illumina said that sales during the quarter rose 6% over the year-earlier quarter to $572 million, about $14 million less than Wall Street expected, according to Thomson Reuters. It would end a 14-quarter string of double-digit growth. Shares dived 19% to 145 in late trading after closing up 2.6% to 178.13, a three-month high moving above its 200-day moving average for the first time this year. The preliminary results missed company expectations as well, according to CEO Jay Flatley. “Our first-quarter results fell short of expectations largely due to lower than expected sales of HiSeq 2500, 3000 and 4000 instruments,” Flatley said in a statement . “Despite this slow start in Q1, we anticipate that our Americas and Asia Pacific regions will meet our expectations for the full year but that Europe will underperform. As a result, we now project approximately 12% revenue growth for fiscal 2016.” Previously, Illumina had guided 16% sales growth for the year. Flatley added that the company is reshuffling European operations to try to address the shortfall, though the statement didn’t provide specifics. Illumina said that it will report full Q1 results after the close on May 3. This was the latest in a series of disappointments from Illumina. Its stock has fallen after every quarterly report since January of last year; it fell again on March 8 after the company said that Flatley will leave his post on July 5, to be succeeded by current President Francis deSouza. The stock had been recovering since then. “The instrument softness was not a complete surprise, given that sequencing instrument growth had slowed down over the past six quarters,” Evercore ISI analyst Ross Muken wrote in an email to clients. “That being said, the magnitude of the revenue guidance change … will be a point of debate for investors.” Scalper1 News
Scalper1 News