NEW YORK (AP) -- Shares of Illumina Inc. climbed to their highest price in almost two years Tuesday after the genetic analysis instrument company posted strong first-quarter results.
THE SPARK: Illumina reported its quarterly results after the market closed on Monday. Excluding costs related to a patent infringement lawsuit Illumina said its net income totaled 46 cents per share, and revenue grew 21 percent to $331 million.
FactSet says analysts expected net income of 39 cents per share on $311.5 million in revenue.
THE BIG PICTURE: Illumina said its results improved because of growth in demand for its HiSeq gene sequencing systems, gene sequencing services, and sales of disposable products during the quarter. President and CEO Jay Flatley said the company experienced "resurgence" in HiSeq sales.
For the full year Illumina expects adjusted net income of $1.55 to $1.62 per share and says its revenue will grow 15 percent, to about $1.32 billion. The San Diego company did not change those forecasts on Monday.
Analysts are estimating net income of $1.68 per share and $1.35 billion in revenue on average.
THE ANALYSIS: Cowen & Co. analyst Doug Schenkel said the results were "fantastic," and based on the first-quarter result it is more likely Illumina can surpass expectations in 2013. Schenkel said he thinks the company sold about 65 HiSeq systems during the quarter, 10 more than he had expected.
He maintained an "Outperform" rating on the stock.
SHARE ACTION: Shares of Illumina advanced $7.32, or 13.3 percent, to $62.44 on Tuesday. During the day the shares rose to $63.82, their highest price since July 2011.