What To Expect From Illumina's (ILMN) Q3 Earnings

Genomics company Illumina (NASDAQ:ILMN) will be reporting results this Thursday after market close. Here’s what to expect.

Illumina beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.06 billion, down 3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

Is Illumina a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Illumina’s revenue to decline 1.4% year on year to $1.07 billion, in line with the 2.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.17 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Illumina has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Illumina’s peers in the life sciences tools & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 23.7%, beating analysts’ expectations by 2.7%, and West Pharmaceutical Services reported revenues up 7.7%, topping estimates by 2.1%. Medpace traded up 8.9% following the results while West Pharmaceutical Services was also up 7.5%.

Read our full analysis of Medpace’s results here and West Pharmaceutical Services’s results here.

There has been positive sentiment among investors in the life sciences tools & services segment, with share prices up 6.1% on average over the last month. Illumina is up 8.3% during the same time and is heading into earnings with an average analyst price target of $111.47 (compared to the current share price of $99.50).

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