Illumina Q4 Revenues Grow 26 Percent, Full-Year 2021 Revenues Jump 40 Percent

Original from: Genome Web

Illumina reported after the close of the market on Thursday that its fourth quarter 2021 revenues rose 26 percent year over year, narrowly beating its own forecast last month of 25 percent growth.

For the three months ended Jan. 2, 2022, Illumina reported revenues of $1.20 billion, up from $953 million in the year-ago quarter and above analysts' average estimate of $1.13 billion. Product revenues were $1.07 billion, up 29 percent from $831 million, and service and other revenues were $133 million, up 9 percent from $122 million in Q4 of 2020.

"We are seeing strength across our business as a growing number of patients around the world are accessing the life-saving benefits of genomics, from oncology therapy selection to genetic disease testing and pathogen surveillance," Illumina CEO Francis deSouza said in a statement. 

"Opportunities are also expanding across new markets like proteomics, infectious disease, and drug discovery. In addition, momentum for Grail's groundbreaking multi-cancer early detection blood test continues to accelerate. We are also making great progress on exciting new innovations, like our breakthrough Chemistry X and our Infinity long-read technology, to help clinicians and scientists make discoveries that improve patient care."

Net income for the quarter was $112 million, or $.71 per share, compared to $257 million, or $1.75 per share, in Q4 2020. Adjusted net income was $0.75 per share, beating analysts' average estimate of $0.49 per share.

Illumina's Q4 R&D expenses were $350 million, up 75 percent from $200 million a year ago. The firm's SG&A expenses increased 47 percent to $426 million from $298 million a year ago.

Full-year 2021 revenues grew 40 percent to $4.53 billion from $3.24 billion in 2020, beating Illumina's January forecast and the consensus Wall Street estimate of $4.45 billion. Product revenues were $3.97 billion, up 45 percent from $2.74 billion in 2020, and service and other revenues were $558 million, up 11 percent from $504 million the previous year.

Net income for the year was $762 million, or $5.04 per share, compared to $656 million, or $4.45 per share, in 2020. Adjusted EPS for 2021 was $5.90 per share, beating the Wall Street estimate of $5.64 per share.

Illumina's 2021 R&D expenses nearly doubled to $1.19 billion from $682 million a year ago. SG&A expenses more than doubled in 2021 to $2.09 billion from $941 million in 2020.

Illumina reiterated its previous full-year 2022 revenue guidance in the range of $5.15 billion to $5.24 billion, representing growth of 14 to 16 percent. Core Illumina revenues are still expected to grow 13 percent to 15 percent, and Grail is projected to have revenue in the range of $70 million to $90 million. The firm expects adjusted EPS in the range of $4 to $4.20. 

As of Jan. 2, 2021, Illumina held $1.23 billion in cash and cash equivalents and $107 million in short-term investments.