Illumina Inc. shares fell 17% after the close on Thursday after the gene sequencing company posted a second-quarter loss, missed sales expectations and revised downwards its full-year outlook.
Illumina ILMN Chief Executive Francis deSouza, +0.06%, said in a statement that the quarterly results fell short of the company’s own expectations because “challenges in a complex macroeconomic environment have impacted the growth we continue to see in our sequencing runs, more than make up for platforms.”
During the conference call, deSouza told analysts he expects the slowdown in customers’ lab expansion, and with it demand for the company’s instruments, to be temporary. The company’s shares recouped some of their losses, although as of 7:00 p.m. Eastern they were still down sharply by about 15%.
“In fact, we’re at the core of their business and their revenue generation, and we’re a very important supplier to those customers,” he said.
Illumina reported a loss of $535 million, or $3.40 per share, compared to net income of $187 million, or $1.26 per share, in the year-ago period. Adjusted for $609 million in legal contingencies plus SG&A and other expenses, earnings were 57 cents per share. Revenue increased to $1.16 billion from $1.13 billion in the year-ago quarter. Analysts polled by FactSet had forecast earnings of 64 cents a share on sales of $1.22 billion.
The company said in a press release that it expects full-year 2022 revenue to grow 4% to 5% compared to fiscal 2021, citing “continued negative impacts from foreign exchange rates, delays in customer lab expansions and macroeconomic-driven ones.” Conservatism”. immediate capital and inventory lockup, including in Greater China.” Last quarter, the company said it expected revenue growth of 14% to 16% for fiscal 2022.
Illumina also said it expects full-year loss per share to be in the range of $2.93 to $2.78. Analysts had expected net earnings of $2.94 per share.
Illumina shares ended the regular session up marginally 0.06% at $227.44 before falling in extended trading. They are down 40% year-to-date, while the S&P 500 index SPX is down nearly 12% -0.07% over the same period. The company’s shares fell sharply in June after it announced its chief financial officer was moving to Quest Diagnostics Inc. DGX, -0.29%.