Illumina Q2 Revenues Climb 25 Percent

Illumina reported after the close of the market on Monday that its second quarter 2018 revenues rose by 25 percent year over year.
 
The San Diego-based genomics technology company reported total Q2 revenues of $830 million, compared to $662 million in the second quarter 2017, and beating analysts' average estimate of $786.6 million.
 
Total Q2 revenue included $673 million in product revenue and $157 in service and other revenue, up from $543 million and $119 million, respectively, in Q2 2017.
 
Product revenue consisted of $127 million in instrument sales and $540 million in consumable revenues from both the sequencing and microarray businesses.
 
Sequencing consumable revenue of $455 million was particularly strong and exceeded the firm's forecast. Sequencing consumable revenue also included $13 million from Chinese customers stocking up on consumables in anticipation of tariffs, Illumina CEO and President Francis deSouza said during a conference call with investors.
 
Revenue from the microarray business grew 25 percent to $140 million.
 
Sequencing consumables, array consumables, and lab and other services each grew more than 30 percent compared to the second quarter of 2017, deSouza said in a statement.
 
During Q2, Illumina began shipping its newest instrument — the semiconductor sequencing-based system iSeq that it unveiled in January — and deSouza said on the call that the early orders are from a "healthy mix" of existing and new customers.
 
Illumina's Q2 2018 net income was $209 million, or $1.41 per share, up from $128 million, or $.87 per share, in Q2 2017. Its adjusted EPS was $1.43, beating the Wall Street estimate of $1.11 per share.
 
As a result of the quarter, Illumina has raised its guidance for fiscal year 2018 and now anticipates its total revenues will grow 20 percent with EPS between $5.10 and $5.20. Previously, it projected 15 percent to 16 percent growth with EPS of $4.45 to $4.55.
 
Illumina's R&D expenses grew 16 percent to $151 million from $130 million in the year-ago quarter. SG&A expenses grew 22 percent year over year to $197 million from $161 million.
 
As of July 1, 2018, the company held $1.3 billion in cash and cash equivalents and $1.2 billion in short-term investments.
 
On Tuesday morning, Illumina's stock was up around 7 percent at $309.14.