Illumina (NASDAQ:ILMN) slumps 15% after hours in reaction to its preliminary Q2 revenue, expected to be ~$835M, up less than 1% from a year ago ($830M) and below consensus of $888M. The less-than-expected growth was due to a large sequencing system order that failed to close, persistent weakness in the direct-to-consumer market and modest weakness in non-high-throughput systems.
As a result, management has lowered its 2019 revenue growth guidance to ~6% from 13 - 14%.
Sequencing revenue should grow ~10%, but its array business will be down ~14%. NovaSeq system shipments will be flat/slightly up from a year ago.
Its Q2 earnings call will be after the close on Monday, July 29.
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