On Jun 20, 2014, we issued an updated research report on life
). Illumina delivered strong fourth-quarter 2013 results with both
the top and the bottom line surpassing the respective Zacks
Consensus Estimate. Another major positive highlight of the quarter
was the company's optimistic outlook for both top- and bottom-line
growth in 2014.
In the quarter under review, Illumina's adjusted earnings per
share of 53 cents breezed past the Zacks Consensus Estimate of 44
cents. Earnings also exceeded the year-ago quarter figure by 15.2%.
Revenues surged 27.1% to $420.8 million, surpassing the Zacks
Consensus Estimate of $391 million.
We are also impressed with the company's recently released
market expansion plan which focuses on three major areas including
reproductive health, oncology and emerging market. Going forward,
Illumina's prospects seem strong on the back of strong global
demand for its products and an attractive product portfolio along
with successful launch of new products like NextSeq 500 and HiSeq X
With the proposed launch of the pre-implantation genetic
screening product - VeriSeq PGS, to be used on the popular MiSeq
platform, and a dedicated management team, we believe Illumina is
well positioned to exploit a more than $20 billion market
opportunity and eventually meet its revised guidance.
In addition, expansion through strategic acquisitions - the most
recent one being NextBio, and partnerships with therapeutics and
diagnostic service providers are expected to add value. Although
government budget cuts, including NIH funding issues, were the
major downsides, strong worldwide demand and solid contributions
from the sequencing business are expected to overcome the
The stock currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Investors interested in the similar sector can also consider
Gilead Sciences Inc.
Osiris Therapeutics, Inc.
). All the three stocks carry a similar Zacks Rank #1.
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