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Illumina's Stock Declines as Sales Projected to Decline and Loss Widens

4.8

Andrew R. Michaud

November 10, 2023

Shares of Illumina, a gene-sequencing company, took a hit following the announcement that it expects sales to decline and its loss to widen in the upcoming year. The stock experienced an 11% drop in premarket trading and had already fallen 47% year-to-date by the close of the market on Thursday.

Previously, Illumina had anticipated a 1% increase in sales for 2023. However, the company revised its projections, now expecting a decline of 2% to 3% instead. The core Illumina business is also forecasted to experience a drop of 3% to 4% in revenue, contrary to the previous expectation of maintaining the same level as last year.

Additionally, Illumina's Grail business is projected to fall at the lower end of its previous guidance range of $90 million to $110 million.

The San Diego-based company is anticipating a much larger loss for this year, with a revised outlook of $6.67 to $6.57 per share compared to the previous estimate of $2.08 to $1.93 per share.

Illumina's adjusted profit, which excludes one-time items, is now expected to be in the range of 60 to 70 cents per share, down from the previously anticipated range of 75 to 90 cents per share.

The decline in Illumina's sales and widened loss forecasts have led to a significant negative impact on its stock performance.

Note: Some information has been redacted for brevity and clarity.