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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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
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