Local science technology firm Illumina Inc. reported third-quarter revenue of $607 million, a 10 percent increase compared to the same period last year. But as anticipated, the company’s earnings came in under its guidance of $625 million to $630 million, and also fell short of Wall Street’s expectations.
Illumina, one of San Diego’s largest public companies, warned stockholders last month that the company’s earnings would fall short of expectations. The company’s stock plummeted 25 percent overnight following the announcement, and has remained low for the past few weeks.
Analysts were estimating revenue of about $628 million prior to Illumina’s announcement last month. After the warning of lower-than-expected revenue, analysts adjusted their expectations down to $614 million. Illumina came in even lower at $607 million.
As previously stated in Illumina’s earlier announcement, the company attributed it’s lower than expected revenues to receiving fewer orders for its HiSeq 2500 and HiSeq 4000 instruments.
During a conference call discussing the firm's Q3 results, Illumina’s CEO Francis deSouza said that as a result of the company's missed revenue forecast, it had set forth a global forecast improvement project in order to better identify changes and trends globally in customers' purchasing patterns. Marc Stapley, Illumina's CFO, will head up that project.
Illumina’s net income was $129 million for the quarter, up from $118 million in the third quarter of 2015. Illumina expects Q4 2016 revenues to be flat to slightly up compared to Q3.
Illumina also announced today that its chief commercial officer Christian Henry will be leaving the company. It has appointed Mark Van Oene, currently the company’s senior vice president and general manager of the Americas, as its interim chief commercial officer.
Illumina’s stock (Nasdaq: ILMN) was down 2.4 percent at $136 per share in Wednesday morning trading.