DNA Sequencing Kit Provider Illumina's Q4 Earnings Edge Above Street Estimates, Works To Resolve GRAIL Quickly
Portfolio Pulse from Vandana Singh
Illumina Inc (NASDAQ:ILMN) reported Q4 2023 sales of $1.12 billion, a 4% increase Y/Y, beating consensus estimates of $1.09 billion. Adjusted EPS was $0.14, surpassing the consensus of $0.02. The company shipped 79 NovaSeq X instruments in Q4 and 352 in FY 2023. Illumina plans to divest GRAIL by Q2 2024 and signed a development agreement with Janssen Research & Development, a Johnson & Johnson (NYSE:JNJ) unit. FY 2024 guidance expects flat Core Illumina revenue and a 20% adjusted operating margin. Carl Icahn escalates boardroom battle at Illumina post-GRAIL divestiture. ILMN shares dropped 2.38% to $139.93.

February 09, 2024 | 2:32 pm
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NEUTRAL IMPACT
Illumina reported higher than expected Q4 sales and EPS, plans to divest GRAIL by Q2 2024, and announced a partnership with Janssen. FY 2024 revenue expected to be flat with a 20% adjusted operating margin.
Despite beating Q4 expectations and forming a significant partnership, the flat revenue outlook for FY 2024 and ongoing boardroom battles may temper investor enthusiasm, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Johnson & Johnson's unit, Janssen Research & Development, signed a development agreement with Illumina for a novel cancer research solution.
The partnership with Illumina on a novel cancer research solution highlights JNJ's commitment to innovation in healthcare, potentially boosting investor confidence and having a positive short-term impact on JNJ's stock.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 70