Illumina Sequences Profits, Exceeding Q3 Guidance

Oct. 22, 2014 4:26 AM ETIllumina, Inc. (ILMN)2 Comments
William Meyers profile picture
William Meyers


  • Non-GAAP diluted EPS was $0.77, up 71% y/y.
  • Guidance for full 2014 was increased again.
  • DNA sequencing machine demand shows no signs of abating.

Illumina (NASDAQ:ILMN), the leading maker of DNA sequencing equipment, reported spectacular third quarter results on Monday, October 20th.

Prior guidance had been that full year 2014 revenue would grow between 25% and 26% over 2013, with non-GAAP EPS between $2.26 and $2.28.

But reported Q3 revenue of $480.6 million was up 35% from Q3 2013. Non-GAAP EPS was $0.77, up 71% from $0.45 year-earlier.

As a result, Illumina raised full year 2014 guidance to revenue growth of 30% y/y and non-GAAP EPS between $2.63 and $2.65.

Apparently, demand for gene sequencing and the gene sequencers used to do it is in an explosive growth phase. The last time Illumina saw growth this fast was in Q2 2011. But that was growth on a smaller base, which was easier to achieve.

Revenue was $480.6 million, up 7% sequentially from $447.6 million and up 35% from $356.8 million in the year-earlier quarter. GAAP net income was $93.5 million, up 100% sequentially from $46.6 million, and up 198% from $31.4 million year-earlier. Diluted GAAP EPS was $0.63, up 103% sequentially from $0.31, and up 186% from $0.22 year-earlier.

On a non-GAAP basis, net income was $114 million, up 34% sequentially from $85 million, and up 81% from $63 million year-earlier. Diluted EPS was $0.77, up 35% sequentially from $0.57, and up 71% from $0.45 year-earlier. Sometimes I look askance at non-GAAP numbers, but in this case, the non-GAAP numbers lead to a more reasonable (lower) EPS growth rate.

Quarter Revenue (millions) Non-GAAP EPS
Q3 2013 $356.8 $0.45
Q4 2013 $335.4 $0.45
Q1 2014 $420.8 $0.53
Q2 2014 $447.6 $0.57
Q3 2014 $480.6 $0.77

The Equipment

Illumina dominates the DNA sequencing equipment industry with three lines of machines: HiSeq, NextSeq, and MiSeq. The MiSeq benchtop sequencer models are production oriented, bringing relatively low cost genome

This article was written by

William Meyers profile picture
I provided stock and bond research and analysis to a small cap specialist investor, Lloyd Miller, from 2002 until his death in January 2018. For my own account I invest mainly in technology and biotechnology stocks. My technology and investment web site is, where readers can view the notes I take to make decisions and to write articles for Seeking Alpha.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (2)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.