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Illumina Inc ILMN

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Illumina Reveals New 2021 Outlook After Q1 Beat; No Change to FVE

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

After releasing preliminary sales that beat expectations in early April, narrow-moat Illumina revealed full first-quarter results that were similarly strong. We have adjusted our 2021 estimates to reflect these trends, and we have also removed expected Grail results from the second half of 2021 in our model due to the ongoing regulatory challenges around that transaction on antitrust concerns that could at least delay and potentially block the deal. Those changes have increased our operating estimates for 2021, but our fair value estimate, which hinges on much longer-term expectations, has not materially changed.

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Company Profile

Business Description

Illumina provides tools and services to analyze genetic material with life science and clinical lab applications. The company generates revenue from sequencing tools and dedicated consumables (76% of 2020 sales). Illumina’s high-throughput technology enables whole genome sequencing in humans and other large organisms. Its lower throughput tools enable applications that require smaller data outputs, such as viral and cancer tumor screening. Illumina also sells microarrays (9% of sales) that enable lower-cost, focused genetic screening with primarily consumer and agricultural applications. Services account for 16% of sales and include basic maintenance services, clinical lab applications (such as noninvasive prenatal, oncology, and rare-disease screening), and whole genome sequencing.

Contact
200 Illumina Way
San Diego, CA, 92122
T +1 858 202-4500
Sector Healthcare
Industry Diagnostics & Research
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 30, 2020
Stock Type Slow Growth
Employees 7,850

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