Genomics company Illumina (NASDAQ: ILMN) will be reporting earnings this Thursday afternoon. Here’s what to look for.
Illumina beat analysts’ revenue expectations last quarter, reporting revenues of $1.16 billion, up 5% year on year. It was an exceptional quarter for the company, with full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ organic revenue estimates.
Is Illumina a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Illumina’s revenue to grow 2.9% year on year, a reversal from the 1.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Illumina rarely misses Wall Street’s revenue estimates.
Looking at Illumina’s peers in the life sciences tools & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. West Pharmaceutical Services delivered year-on-year revenue growth of 21%, beating analysts’ expectations by 8.4%, and Thermo Fisher reported revenues up 6.2%, topping estimates by 1.5%. West Pharmaceutical Services traded up 11.6% following the results while Thermo Fisher was down 8.6%.
Read our full analysis of West Pharmaceutical Services’s results here and Thermo Fisher’s results here.
There has been positive sentiment among investors in the life sciences tools & services segment, with share prices up 10.8% on average over the last month. Illumina is up 5.5% during the same time and is heading into earnings with an average analyst price target of $136.67 (compared to the current share price of $127.48).
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