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How Illumina Is Currently Positioned

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Illumina overview

Illumina (ILMN) is a leader in DNA sequencing and array-based technologies. It focuses on areas such as oncology, population genomics, consumer genomics, and noninvasive prenatal testing. Its products are used in life sciences, oncology, reproductive health, agriculture, and various other emerging markets.

On November 1, Illumina announced that it had agreed to acquire Pacific Biosciences at $8 per share for a total consideration of ~$1.2 billion. The acquisition is expected to help the former provide integrated workflows and innovations while assisting clinicians in offering new tests cost effectively.

In this series, we’ll explore Illumina’s financials and segmental performances. We’ll also consider analysts’ views on the company’s stock and valuation metrics.

Top line

Illumina generated total revenue of $853.0 million in the third quarter compared to $714.0 million in the comparable period of 2017. This growth was driven by higher consumables, services, and instruments sales. Its product revenues consisting of sales of instruments and consumables for genetic analysis rose from $596.0 million in the third quarter of 2017 to $710.0 million in the third quarter of 2018.

Illumina’s services and other revenue, which consists of genotyping and sequencing services and instrument services contracts, also increased from $118.0 million in the third quarter of 2017 to $143.0 million in the latest quarter.

Under product sales, the company’s consumables sales rose from $451.0 million in the third quarter of 2017 to $550.0 million in the third quarter of 2018. Illumina’s instrument sales also increased from $140.0 million in the third quarter of 2017 to $154.0 million in the third quarter of 2018.

We’ll take a look at Illumina’s geographical performance in the next article.

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