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Medical technology & services

Illumina stock drops on another earnings warning

Illumina Inc (NASDAQ:ILMN) shares sank 11% in pre-market trading on Friday after the gene-testing company reduced its annual profit forecast for the second straight quarter, citing weakness in demand for its sequencing instruments, consumables and services.

Illumina said it sees its full year 2023 earnings per share (EPS) of between $0.60 to $0.70, falling short of the $0.80 analyst consensus forecast.

The company also reported mixed third quarter 2023 financial results after Thursday’s close.

Illumina’s 3Q EPS of $0.33 topped expectations of $0.13, while its revenue for the period of $1.12 billion missed the $1.13 billion consensus estimate.

The company also announced that its 2023 consolidated revenue is expected to decline 2% to 3% from 2022.

Last month, activist investor Carl Icahn sued Illumina’s board of directors, accusing them of breaching their fiduciary duties.

Shares of Illumina have fallen 47% year to date as of Thursday’s closing price.

Contact Sean at sean@proactiveinvestors.com

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