Why Illumina Shares Illuminated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of genetic testing specialist Illumina (NASDAQ: ILMN  ) popped 12% today after the company's quarterly results and outlook topped Wall Street expectations. 

So what: The stock has soared over the past year on better-than-expected growth, and today's second-quarter results -- profit spiked 53% on a revenue jump of 23% -- coupled with upbeat guidance for the full year only reinforce that trend. Additionally, management said that it saw a significant increase in product and service revenue all while booking less charges, giving analysts plenty of good vibes over its earnings quality going forward, as well.

Now what: Management now sees full-year adjusted EPS of $1.68-$1.72 on a revenue increase of 20%, well above its prior view of $1.55-$1.62 in adjusted EPS and a 15% bump on the top line.

"Our business demonstrated strong trends globally and our 2013 strategic initiatives for robust long-term growth are progressing as planned," said President and CEO Jay Flatley. "As a result we are raising our expectations for 2013 financial performance."

Of course, with the stock now up more than 100% over its 52-week lows and trading at a forward P/E of around 40, much of those expectations might already be baked into the valuation.

It's no secret that biotech stocks like Illumina have been soaring recently, but the best investment strategy is to pick great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" not only shares stocks that could help you build long-term wealth, but also winning strategies that every investor should know. Click here to grab your free copy today.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2555716, ~/Articles/ArticleHandler.aspx, 9/22/2014 6:38:13 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASD 4,527.69 -52.10 -1.14%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/22/2014 4:00 PM
ILMN $170.47 Down -1.79 -1.04%
Illumina CAPS Rating: ***

Advertisement