Illumina stock plunged to its lowest point in three months Tuesday after the gene-sequencing giant issued a disappointing outlook for 2023.
For the year, Illumina expects $4.9 billion to $5.03 billion in sales, according to a presentation on Monday at the annual J.P. Morgan Healthcare Conference. The company also forecast adjusted earnings of $1.25-$1.50 per share.
Both measures came in light. Analysts polled by FactSet called for about $4.99 billion in sales, just north of the midpoint of Illumina's guidance. The Street also projected a far more bullish $2.67 in per-share earnings.
On today's stock market, Illumina stock toppled 6.2% to end the regular session at 194.45. Shares earlier touched their lowest point since early October, and briefly slid below a consolidation with a buy point at 248.97, MarketSmith.com shows.
A Tricky Time For Illumina Stock
The light profit outlook shook Illumina shareholders at a particularly sticky time for Illumina stock.
Two months ago, the company cut its workforce by about 5% as it began feeling the impact of the global economic downturn. Demand for Illumina's equipment and services also has fallen amid a broader slide for the biotech industry.
Investors in Illumina stock are watching to see how it handles an ongoing dispute for its Grail unit. Illumina followed through on its plan to acquire cancer test-maker Grail in 2021 despite a bevy of antitrust concerns from European regulators. The European Commission has ordered Illumina to keep Grail as a separate entity and eventually unwind the deal.
Illumina is now challenging the European Commission's order.
For the year, Illumina expects Grail to bring in $90 million to $110 million in sales. The company also forecasts an adjusted operating loss of $670 million.
Today, Illumina stock has a low Relative Strength Rating of 24, putting shares in the bottom 24% of all stocks in terms of 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
