Illumina unveils preliminary fourth-quarter revenue that tops estimates
Investing.com -- Illumina (NASDAQ:ILMN) has said it will report consolidated revenue in the fourth quarter that will top analysts' estimates, sending shares in the gene-sequencing products maker higher in early U.S. trade on Tuesday.
In an update unveiling its preliminary financial results, San Diego-based Illumina said consolidated sales during the quarter would rise by 3% compared to the same period last year to $1.12 billion. Bloomberg consensus expectations had placed the figure at $1.07B.
Illumina, which makes DNA sequencers used to accelerate drug development, added that it shipped 79 of its NovaSeq X instruments in the fourth quarter and 352 of the devices over the course of its 2023 fiscal year. The company has claimed that the next-generation system can produce 2.5 times more whole genomes per year than earlier sequencers.
Illumina plans to release its final fourth-quarter and full-year earnings after the close of trading on Feb. 8.
The preliminary numbers come after the group said last month that it will offload cancer screening start-up Grail by the second quarter of 2024.
Grail was acquired by Illumina in 2021 in an agreement that valued the seller of a blood test designed for the early detection of cancer at $7.1 billion. However, the agreement faced heavy scrutiny, particularly after it was completed without the formal approval of the European Commission. The divesiture of Grail would be "consistent" with an order from Brussels, Illumina noted.
The U.S. Federal Trade Commission also pushed back against the deal, flagging that Illumina could deny crucial inputs into cancer-detecting blood tests made by Grail's rivals. A federal appeals court found that while the FTC was right to issue the challenge, it must conduct a new review of the purchase. Illumina said it would not appeal the ruling.
Many investors in Illumina, including billionaire Carl Icahn, had voiced their opposition to the Grail deal as well. Earlier this year, Icahn, arguing that the acquisition amounted to a breach of Illumina's fiduciary duties, helmed a proxy battle that led to the resignation of former boss Francis deSouza.
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