What happened

Shares of Illumina (ILMN -1.62%) were skyrocketing 19% as of 11:30 a.m. EST on Friday. The big jump came after the genomic sequencing leader announced its fourth-quarter and full-year 2020 results following the market close on Thursday.

So what

Illumina reported record revenue in the fourth quarter of $953 million, up 20% from the third quarter and slightly higher than the prior-year period.

The company's adjusted earnings came in at $179 million, or $1.22 per diluted share. This was lower than Illumina's adjusted earnings of $252 million, or $1.70 per share, in the fourth quarter of 2019. But it easily beat the consensus Wall Street estimate of $1.11 per share.

Image of DNA over an outstretched hand

Image source: Getty Images.

It's smart not to put too much focus on any single quarter, whether good or bad. What's more important is the big picture: the growth prospects for the healthcare stock.

And the genomic sequencing pioneer's prospects are encouraging. CEO Francis deSouza said that the company expects a continued recovery from the pandemic, and that full-year revenue in 2021 will grow by 17% to 20%.

Now what

There are several things to watch with Illumina this year. The company expects to close its acquisition of the biotech GRAIL in the second half of 2021. Its partnerships with several drugmakers, including Bristol Myers Squibb and Merck, should begin to pay off.

Illumina should also achieve progress with its partnerships with Harvard Pilgrim Health Care targeting genetic disease testing, and with Sequoia Capital China to foster genomic start-ups in China.