Illumina Lowers Revenue Outlook, Shares Sink 16%

(RTTNews) - Shares of Illumina Inc. (ILMN) plunged nearly 16% in the extended session Thursday after the genetics company reported a weak preliminary revenues for the second quarter and lowered its full-year 2019 revenue guidance.

For the second quarter, the company expects revenues of about $835 million, up from $830 million a year ago. Analysts polled by Thomson Reuters currently estimate revenues of $888.18 million for the quarter.

The company said its second-quarter results were impacted by about $50 million lower revenues due to population genomics initiatives, ongoing weakness in the direct-to-consumer market and lower sales associated with its non-high-throughput sequencing systems and consumables.

"We are obviously disappointed with our second quarter financial results. Our preliminary analysis suggests that these challenges are transitory and do not reflect a macro change to the fundamentals of our business," said Francis deSouza, President and CEO.

"Despite our shortfall this quarter, we remain as enthusiastic about the long-term growth prospects for our markets as we have ever been, and are committed to setting the industry's bar for consistency and execution in the dynamic and rapidly growing world of genomics."

Moving ahead, Illumina said it now expects fiscal year revenue growth of about 6%. Previously, while reporting first quarter results, the company said it expects revenue growth of 13% to 14% in 2019. Analysts currently estimate revenue growth of 13.10%.

ILMN closed Thursday's trading at $363.66, down $9.04 or 2.43%, on the Nasdaq. The stock further dropped $57.91 or 15.92% in the after-hours trade.