Illumina Shares Up 6% As Q2 Results Top View, Boosts 2013 Outlook

(RTTNews) - Shares of Illumina Inc. (ILMN) surged six percent in extended trading on Tuesday after the life science tools maker reported results for the second quarter that topped analysts' expectations. The company also raised its earnings and revenue outlook for the full-year 2013. Profit for the quarter increased from last year on improved operating margins and double-digit revenue growth.

"We are very pleased with our operational execution for the first half of 2013 and the resulting record financial performance," President and CEO Jay Flatley said in a statement.

San Diego, California-based Illumina posted net income of $35.88 million or $0.26 per share for the second quarter, higher than $23.40 million or $0.18 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $59.69 million or $0.43 per share, compared to $52.57 million or $0.40 per share in the year-ago quarter.

On average, 21 analysts polled by Thomson Reuters estimated earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 23 percent to $346.09 million from $281.61 million in the same quarter last year, and topped nineteen Wall Street analysts' consensus estimate of $331.77 million.

Product revenue for the quarter grew to $313.50 million from $258.84 million, and service and other revenue increased to $32.60 million from $21.77 million in the year-ago quarter.

Operating margin for the quarter improved 200 basis points to 17.3 percent from last year as research and development expense declined as a percentage of total sales.

The company also raised its expectations for fiscal 2013, stating that its business showed strong trends globally and that its 2013 strategic initiatives for long-term growth are progressing as planned.

Looking ahead to fiscal 2013, the company now expects adjusted earnings in a range of $1.68 to $1.72 per share, on projected revenue growth of about 20 percent, implying annual sales of $1.38 billion, based on revenues of $1.15 billion reported for fiscal 2012.

Street is currently looking for full-year 2013 earnings of $1.67 per share on annual revenues of $1.37 billion.

Earlier, the company had forecast adjusted earnings in the range of $1.55 to $1.62 per share, on projected sales growth of about 15 percent.

"Our business demonstrated strong trends globally and our 2013 strategic initiatives for robust long-term growth are progressing as planned. As a result we are raising our expectations for 2013 financial performance," Flatley added.

Separately, Illumina acquired Advanced Liquid Logic, a provider of liquid handling solutions, which will enable the company to deliver the simplest sample-to-answer next-generation sequencing workflow.

ILMN closed Tuesday's regular trading session at $73.77, down $0.96 or 1.28% on a volume of 1.38 million shares. However, the stock surged $4.23 or 5.73% in after-hours trading.