The 10-second takeaway
For the quarter ended April 1 (Q1), Illumina beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, and net margins increased.
Illumina tallied revenue of $272.8 million. The 19 analysts polled by S&P Capital IQ wanted to see revenue of $263.4 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $282.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.36. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share on the same basis. GAAP EPS of $0.20 for Q1 were 25% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 67.5%, 10 basis points worse than the prior-year quarter. Operating margin was 20.6%, 570 basis points worse than the prior-year quarter. Net margin was 9.6%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $276.0 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 670 members out of 720 rating the stock outperform, and 50 members rating it underperform. Among 205 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 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 $55.80.
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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.