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Illumina plunges after reducing its revenue forecast

An Illumina sales consultant presents a Flow Cell at a symposium in La Jolla, California.

Sam Hodgson | Reuters

Illumina shares fell by over 16% in prolonged trading after the genetics company lowered its guidance for the current year and reported disappointing sales for the second quarter.

Illumina said it planned to release a turnover of about 835 million US dollars for the second quarter, compared with 830 million US dollars for the same quarter of last year . Analysts forecast revenue of $ 887.9 million, according to Consensus estimates from Refinitiv.

For the full year, Illumina said it now expects revenue growth of about 6%. This figure is well below its previous forecast of revenue growth of approximately 13% to 14% for FY 2019.

The company said the second quarter results were affected by population genomics initiatives that did not close in the second half of June as planned. Illumina also reported a weakness in the direct-to-consumer market.

"We are obviously disappointed with our second quarter financial results, and our preliminary analysis suggests that these challenges are transitory and do not reflect a global change in the fundamentals of our business," said Francis deSouza, president and chief executive officer of the company. Illumina. "Despite our shortfall this quarter, we remain as enthusiastic about the long-term growth prospects for our markets and we are committed to positioning the sector in terms of consistency and execution in the dynamic and dynamic world. rapidly growing genomics. "

Illumina is expected to release its full second quarter results on July 29.

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