What Illumina’s Bottom Line Trend Indicates

Bottom line

Illumina (ILMN) incurred an interest expense of $15.0 million in the third quarter of 2018 compared to $10.0 million in the previous year’s period. Illumina’s interest income grew from $4.0 million in the third quarter of 2017 to $14.0 million in the latest quarter. Its income tax provision increased from $23.0 million in the third quarter of 2017 to $44.0 million in the most recent quarter.

What Illumina’s Bottom Line Trend Indicates

Illumina’s net income jumped from $163.0 million in the third quarter of 2017 to $199.0 million, which translated into net EPS of $1.33, in the third quarter of 2018. Illumina’s net EPS were $1.11 in the third quarter of 2017.

In 2018 and 2019, Illumina’s net income is expected to be $796.23 million and $877.18 million, respectively, compared to its net income of $725.0 million in 2017.

Price performance

After a strong run from $209.54 on February 8 to a high of $372.61 on September 28, Illumina stock witnessed selling pressure and corrected to $289.5 on October 24. Subsequently, Illumina stock has seen buying interest and recovered to its present $334 level.

Illumina’s long-term debt-to-equity ratio stands at 0.25. In comparison, the long-term debt-to-equity ratios of its peers Danaher (DHR), Thermo Fisher Scientific (TMO), and Waters Corporation (WAT) stand at 0.38, 0.66, and 0.61, respectively.

We’ll take a look at analysts’ views on Illumina stock in the next article.