Illumina Beats Up on Analysts Yet Again (ILMN)

Illumina Beats Up on Analysts Yet Again

Illumina (Nasdaq: ILMN ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 1 (Q2), Illumina met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.

Gross margins grew, operating margins dropped, and net margins shrank.

Revenue details
Illumina recorded revenue of $280.6 million. The 19 analysts polled by S&P Capital IQ predicted a top line of $278.5 million on the same basis. GAAP reported sales were 2.4% lower than the prior-year quarter's $287.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.40. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.18 for Q2 were 18% lower than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 69.9%, 160 basis points better than the prior-year quarter. Operating margin was 16.6%, 980 basis points worse than the prior-year quarter. Net margin was 8.3%, 240 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $284.1 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.51.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 670 members out of 716 rating the stock outperform, and 46 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give Illumina a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Illumina is outperform, with an average price target of $50.39.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Illumina. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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