Illumina
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Illumina met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Revenue details
Illumina reported revenue of $285.9 million. The 19 analysts polled by S&P Capital IQ hoped for a top line of $285.4 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $235.5 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 $0.41. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.22 for Q3 were 47% higher than the prior-year quarter's $0.15 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 69.8%, 180 basis points better than the prior-year quarter. Operating margin was 23.8%, 630 basis points better than the prior-year quarter. Net margin was 10.4%, 180 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $304.7 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.56.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 672 members out of 721 rating the stock outperform, and 49 members rating it underperform. Among 190 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 183 give Illumina a green thumbs-up, and seven 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 $50.25.
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