Illumina (ILMN) earnings: what to expect from the growth stock?

8:58 am ET, 22 Oct 2018

Illumina, Inc. (ILMN) shares are trading at $315.00, up 0.61%. The company is announcing its quarterly earnings results on Tuesday after the market close. What's driving Illumina stock price? What's ILMN stock price forecast?

Illumina provides sequencing and array-based solutions for genetic analysis.  Lately, the stock has performed well: it generated a return of 59% in the past year. NovaSeq product line’s demand is very good.

Investors are showing interest in the stock because of the strong demand for NovaSeq products. The technology can be used for rare and undiagnosed disease research. On the other hand, some investors worry about the company's high valuation. Last quarter’s revenue rose 25% to $830 million and earnings per share came at $1.43 per share compared to $0.82 for the same period last year.

Third-quarter results will be released after market close on October 23, 2018. Analysts expect Illumina to earn $1.26 per share on revenue of $828.59 million. The company beat analyst estimates in the previous four quarters.

What is the sentiment towards the ILMN stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Illumina, Inc. (ILMN) returned -8.04%.

Illumina, Inc. (ILMN) forward P/E ratio is 59.79, and it’s high compared to its industry peers’ P/E ratios.

Illumina, Inc. (ILMN) average analyst price target ($328.29) is 2.05% above its current price ($321.69).

For the latest price and information on Illumina, Inc., please visit Finstead and search for "ILMN price" or "ILMN news".

Illumina, Inc. (ILMN) Stock Guide

Updated at: 1:16 am ET, 18 Sep 2020

Before we start: if you're looking for ILMN stock price, you can quickly find it out by visiting Finny and typing "ILMN quote". If you're looking for a quick scoop on ILMN stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ILMN". You'll get all this info in one place. Or you can just type "ILMN news" to get the latest stock news.

Looking to buy or sell Illumina, Inc. (ILMN)? Interested in getting the full scoop on ILMN, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ILMN stock guide, we'll address key questions about ILMN, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ILMN earnings?
2. What is ILMN stock forecast (i.e., prediction)?
3. ILMN buy or sell? What is ILMN Finny Score?
4. What are the reasons to buy ILMN? Why should I buy ILMN stock?
5. What are the reasons to sell ILMN? Why should I sell ILMN stock?
6. What are ILMN key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ILMN earnings?

ILMN trailing 12-month earnings per share (EPS) is $4.68.

Analyst Predictions

2. What is ILMN stock forecast (i.e., prediction)?

Based on ILMN analyst price targets, ILMN stock forecast is $347.86 (for a year from now). That means the average analyst price target for ILMN stock is $347.86. The prediction is based on 18 analyst estimates.

The low price target for ILMN is $220.00, while the high price target is $390.00.

ILMN analyst rating is Buy.

Analysis

3. ILMN buy or sell? What is ILMN Finny Score?

#{finnyScore:44}Our quantitative analysis shows 4 reasons to buy and 5 reasons to sell ILMN, resulting in Finny Score of 44.

4. What are the reasons to buy ILMN? Why should I buy ILMN stock?

Here are the reasons to buy ILMN stock:

  • Genome sequencing remains a relatively nascent market, representing a large growth opportunity for Illumina's instruments.
  • Weak economic conditions have constrained global research budgets, but academic, government, and commercial markets have specifically prioritized sequencing research.
  • Illumina currently has the largest, and growing, installed base of sequencing instruments, which translates into ongoing sales of higher-margin consumables.
  • ILMN profitability is improving. The YoY profit margin change was 7.41 percentage points. See ILMN profitability chart.
  • ILMN average analyst rating is Buy. See ILMN analyst rating chart.
  • ILMN average analyst price target ($347.86) is above its current price ($298.02). See ILMN price target chart.
  • ILMN cash to debt ratio is 1.73, higher than the average industry (0.21) and sector (0.16) cash to debt ratio. See ILMN cash to debt chart.

5. What are the reasons to sell ILMN? Why should I sell ILMN stock?

Let's look at the reasons to sell ILMN stock (i.e., the bear case):

  • An emerging sequencing technology could eventually leapfrog Illumina’s platform, leading to market share losses.
  • A significant portion of Illumina’s market growth will require clinical adoption of sequencing technology, which faces considerable regulation, validation, treatment guidelines, and reimbursement challenges.
  • Illumina’s future success depends on management’s ability to sustain innovation and astute capital allocation. One misstep could prove costly.
  • ILMN quarterly revenue growth was -24.50%, lower than the industry and sector average revenue growth (1.20% and 0.83%, respectively). See ILMN revenue growth chart.
  • ILMN forward P/E ratio is 50.78, which is high compared to its industry peers’ P/E ratios. See ILMN forward P/E ratio chart.
  • ILMN PEG ratio (P/E adjusted for growth) is 12.07, which is high compared to its industry peers’ PEG ratios. See ILMN PEG chart.
  • ILMN short interest (days to cover the shorts) ratio is 3.62. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ILMN short interest ratio chart.
  • ILMN Enterprise Value/Revenue multiple is 15.15, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See ILMN Enterprise Value/Revenue chart.

Key Stats

6. What are ILMN key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ILMN:

Metrics ILMN
Price $298.06
Average Price Target / Upside $347.86 / 16.71%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Diagnostics & Research
Sector Healthcare
Number of Employees 7,300
Market Cap $50.78B
Forward P/E Ratio 50.78
Price/Book Ratio 15.16
Revenue (TTM) $3.35B
YoY Quarterly Revenue Growth -24.50%
Profit Margin 20.68%

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