Illumina falls after cutting full-year forecast

Illumina Inc (NASDAQ:) shares fell nearly 5% in after-hours trading after the company slashed its full-year forecast.

The company’s adjusted earnings per share came in at 32 cents, easily surpassing both the estimate of 2 cents. In terms of revenue for the second quarter, Illumina generated $1.18 billion, which represents a modest 1.2% year-over-year increase, topping the $1.16B expectations.

The company’s adjusted gross margin stood at 66.5%, which is lower than the 69.4% reported in the same period last year. However, it exceeded the estimated gross margin of 64.8%.

“Illumina’s second quarter consolidated revenue grew 8% sequentially from the first quarter, and we saw higher-than-anticipated NovaSeq X shipments,” said Charles Dadswell, Interim Chief Executive Officer.

“Despite additional placements, we expect our second half revenue to be negatively impacted by customers remaining more cautious in their purchasing, a more protracted recovery in China, and a larger-than-expected temporary decline in high throughput consumables as customers transition to the NovaSeq X. In response, we are increasing customer support for the NovaSeq X and continue to manage our expense base in a disciplined way.”

As a result, the company slashed its full-year profit forecast to $0.75-0.90, missing the $1.33 analyst target.