Illumina Profit Surges, Lifts Outlook; Shares Up 10%

(RTTNews) - Illumina Inc. (ILMN) on Monday reported a surge in third-quarter profit, due mainly to a 35 percent jump in revenues and lower operating costs, topping Wall Street estimates.

Looking ahead, the company lifted its earnings and revenue outlook for the full year 2014. Following the news, shares of the biotechnology company surged 10 percent on the Nasdaq in the extended trading hours.

San Diego, California-based Illumina's third-quarter profit rose to $93 million or $0.63 per share from $31 million or $0.22 per share last year.

Excluding one-time items, adjusted earnings for the third quarter rose to $114 million or $0.77 per share from $63 million or $0.45 per share last year. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.

Illumina's revenues for the third quarter jumped 35 percent to $480.6 million from $356.8 million a year ago. Analysts had a consensus revenue estimate of $451.20 million for the third quarter.

"Illumina experienced tremendous momentum in the third quarter, with strong shipments in HiSeq X, NextSeq and MiSeq, as well as the associated consumables, resulting in record financial results," said Chief Executive Jay Flatley.

Gross margin, or gross profit as a percentage of sales, improved to 69.5 percent from 58.8 percent last year. Research and development costs dropped to $85.1 million from $71.0 million, while selling, general and administrative costs dropped to $119.9 million from $95.6 million last year.

The company lifted its full-year 2014 outlook on the back of some strong quarterly results. The company now expects adjusted earnings of $2.63 to $2.65 per share on revenue growth of about 30 percent. Analysts currently expect earnings of $2.30 per share on revenue growth of 26.9 percent for the full year 2014.

Earlier, the company projected adjusted earnings of $2.26 to $2.28 per share and revenue growth of 25 to 26 percent.

ILMN closed Monday's trading at $164.47, down $0.44 or 0.27%. The stock, however, gained $15.71 or 9.55% in the after-hours trade.