Illumina, Inc. (NASDAQ: ILMN) announced 2019 revenue growth guidance of 13-14 percent, and much of this revenue growth is expected to be in the back half of the year.
Yet the company's first-quarter guidance raises concerns around whether Illumina can meet its full-year target, according to Morgan Stanley.
Analyst Steve Beuchaw maintains an Equal-Weight rating on Illumina with a $288 price target.
Illumina reported a marked deceleration in revenue growth to 11 percent in Q4 versus the 20-percent growth generated in the previous four quarters, Beuchaw said in a Wednesday note.
The Q4 results were pre-announced and the 2019 guidance was as expected, the analyst said.
Illumina’s Q1 guidance grabbed attention, as it reflects a deceleration in growth to single digits and is 6-percent below consensus expectations, Beuchaw said. Investor feedback “highlights a lack of confidence” in the company being able to achieve its 2019 guidance, he said.
The 2019 guidance indicates large population sequencing projects that will impact near-term results, the analyst said.
Morgan Stanley lowered its revenue estimates for 2019 and 2020 by 6.7 percent and 8 percent, respectively. The firm also lowered margin expansion expectations, resulting in a downward revision of EPS estimates for 2019 and 2020 from $6.83 to $6.38 and from $8.28 to $7.69, respectively.
Illumina shares were down 4.86 percent at $271.39 at the time of publication Wednesday.
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Earnings Scheduled For January 29, 2019
Latest Ratings for ILMN
|Jan 2019||Deutsche Bank||Downgrades||Buy||Hold|
|Jan 2019||Morgan Stanley||Maintains||Equal-Weight||Equal-Weight|
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