Illumina, Inc. (NASDAQ:ILMN) posts loss

Illumina, Inc. (NASDAQ:ILMN) stock fell 8.47% (As on August 12, 11:41:52 AM UTC-4, Source: Google Finance) after the company swung to a loss in the second quarter, fell short of revenue expectations and revised its full-year outlook downward. Illumina has reported a loss of $535 million compared with net income of $187 million, in the year-ago period. During the second quarter of 2022, Illumina recognized $609 million in legal contingencies, including an accrual of $453 million, recorded in Q2 2022, for the potential fine that the European Commission may impose of up to 10% of our consolidated annual revenues and an estimated accrual of $156 million, also recorded in Q2 2022, related to the settlement of the litigation with BGI in July 2022. Capital expenditures for free cash flow purposes were $71 million during the second quarter of 2022. Cash flow from operations was $125 million, compared to $253 million in the prior year period, with the year-over-year decrease primarily attributable to GRAIL’s operating loss. Free cash flow  was $54 million for the quarter, compared to $209 million in the prior year. At the close of the quarter, the company held $1,327 million in cash, cash equivalents and short-term investments, compared to $1,339 million as of January 2, 2022.

ILMN in the second quarter of FY 22 has reported the adjusted earnings per share of 57 cents, missing the analysts’ estimates for the adjusted earnings per share of 64 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 5 percent to $1.16 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $1.22 billion.

The company expects full-year revenue for 2022 to grow 4% to 5% from fiscal-year 2021, due to ongoing negative impact of foreign exchange rates, customer lab expansion delays, and macroeconomic-driven conservatism around immediate capital and inventory commitments, including in Greater China. Last quarter, the company said it expected 14% to 16% revenue growth for fiscal-year 2022. Illumina also said it expects to post a per-share loss of $2.93 to $2.78 for the full year. Analysts had expected net income of $2.94 a share.

On the other hand, the company had announced strategic collaboration with AstraZeneca to develop companion diagnostic tests and identify patients with high-risk, early-stage disease who could benefit from novel therapies. It has expanded offering of Galleri across the U.S. through partnerships with Mercy, one of the 25 largest U.S. health systems, Community Health Network in the Midwest, with Ochsner Health, the largest Gulf South health system, and with Intermountain Healthcare in Utah.

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