Illumina’s stock fell 16% in after-hours trading after the company reduced its revenue expectations for the second quarter and the rest of 2019.
On July 11, the company said it projects $835 million in second quarter revenue, or $50 million lower than originally forecast.
The maker of technology that decodes DNA largely attributed the lower-than-anticipated sales to population genomics initiatives that did not close in the second half of June as expected.
Illumina also noted a softening in the direct-to-consumer market, as well as certain sequencing systems and consumables.
“We are obviously disappointed with our second quarter financial results. Our preliminary analysis suggests that these challenges are transitory and do not reflect a macro change to the fundamentals of our business,” said CEO Francis deSouza in a news release.
“Despite our shortfall this quarter, we remain as enthusiastic about the long-term growth prospects for our markets as we have ever been, and are committed to setting the industry’s bar for consistency and execution in the dynamic and rapidly growing world of genomics.”
The expected $835 million second quarter revenue would be $5 million higher than the same period in 2018. In contrast, past quarters in recent years regularly saw double-digit growth.
Earlier this year the company anticipated fiscal-year revenue growth of 13% to 14% — now expected to be a 6% increase.
The company will release second quarter results on July 29 with more details.