Here's a review of the key events from April that helped drive the company's share price higher:
- Illumina launched the VeriSeq NIPT Solution in Europe. This product will provide Europeans with a noninvasive prenatal test that can screen for chromosomal abnormalities in as little as one day.
- Illumina reported pleasing first-quarter results. Sales jumped 4.5% to $598 million, which came in above management's guidance range and topped Wall Street's expectation. Adjusted EPS fell 9.9% to $0.64, but that was mostly owed to a higher tax rate. This figure matched what market watchers had predicted.
- CEO Francis deSouza stated that the company received more than 135 orders in the first quarter for its new NovaSeq products.
- Management guided for second-quarter revenue to grow around 7% and for non-GAAP earnings to land between $0.65 to $0.70. The midpoint of the company's EPS guidance range represents another year-over-year decline. However, Wall Street was predicting a decline, so this guidance didn't surprise the markets..
These upbeat announcements caused traders to bid up the company's share price.
Illumina believes that its revenue and profits will grow by double-digits in 2017 as customers begin to upgrade to the company's NovaSeq platform. However, management warned investors that near-term profits will likely be negatively impacted by higher costs associated with the launch. That's a trade-off that long-term investors should be happy to see since the NovaSeq series promises to keep the company one step ahead of competitors such as Pacific Biosciences of California and Thermo Fisher Scientific. With 135 orders booked in the first quarter alone, Illumina's NovaSeq platform looks like it has a bright future ahead.