Illumina management announced a 25% YoY increase in the company's revenue, to $1.19 billion, with a consensus of $1.16 billion. The management's forecast for the indicator for 2022 puts it in the range of $5.15-5.24 billion, which implies an increase of 14-16%, with general market expectations at $4.88 billion. The company forecasts an operating margin of 28%, EPS, taking into account the dilution effect from the Grail takeover, in the range of $4-4.2 with a consensus of $4.01.
Illumina has announced several major new joint projects, including partnerships with Agendia, Boehringer Ingelheim, Optum and Nashville Biosciences. Collaboration with these companies creates opportunities for the introduction of Illumina products into clinical and large-scale genomics. Illumina is also ready to offer solutions for Chemistry X genomics, allowing to double the sequencing cycle, triple the accuracy of reading, as well as increase its length. The company has introduced a new Infinity technology, early access to which will be opened in the second half of 2022. An important advantage of the new technology will be the absence of the need to change equipment for its application.
Illumina continues to work on optimizing costs and increasing the availability of genetic sequencing. These are the main goals for the entire sector. Confident financial results and an encouraging forecast, supported by the prospect of launching new technological solutions, allow us to assess the prospects of ILMN shares with optimism.
Uncertainty about the company is associated with the takeover of the Grail spin-out, which is associated with regulatory risks. The European authorities have not yet approved this deal. Analysts are skeptical about raising Grail's revenue forecast to $70-90 million in 2022 due to the low level of reliability of the predictive capabilities of its products.
The market reacted positively to the data published by Illumina management. The company's shares gained 17% in price at the auction on January 11. At the same time, the issuer continues to trade at fairly high multipliers: P/E NTM is 103.9, and EV/Sales is held at 15.7. However, this is typical for actively developing industry innovation leaders.