Illumina (ILMN) Announces Preliminary Q4 Sales, Issues ’22 View

Illumina, Inc. ILMN recently announced preliminary fourth-quarter and full-year 2021 revenue along with 2022 guidance at the JP Morgan Healthcare 2022 conference. The company also discussed its latest partnerships and product pipelines, and identified long-term growth opportunities.

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Preliminary results for the fourth quarter and twenty-second quarter

Illumina reported fourth-quarter consolidated primary revenue of approximately $1.19 billion, an increase of 25% year-over-year thanks to record revenue growth across tools and consumables. The Zacks consensus estimate for fourth-quarter revenue is $1.09 billion.

In addition, the company reported preliminary consolidated revenue for fiscal year 2021 of approximately $4.517 billion, up 39% from 2020. This rise was driven by record revenue in all regions and the highest number of shipments. The Zacks consensus estimate for Illumina’s revenue for 2021 is held at $4.42 billion, indicating a 36.4% increase over last year’s figure.

2022 forecast

Illumina projects consolidated revenue of $5.15 to $5.24 billion for 2022, indicating growth in the 14-16% year-over-year range as awareness of sequencing, demand and adoption expands. The Zacks consensus estimate of itself is fixed at $4.88 billion, indicating a 10.5% increase over the figure recorded last year.

New Collaboration Deals

Illumina has entered into partnership agreements with Agendia and Boehringer Ingelheim to advance the development of accurate diagnostics and treatment drugs for patients with advanced cancer. The company also announced its collaboration with Optum – a leading health services innovation company – to advance the adoption of genomics in clinical practice. Illumina and Optum are conducting studies to identify, validate and demonstrate the effectiveness of genome-based testing with their newly developed Optum Evidence Engine.

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Illumina has entered into another collaboration agreement with SomaLogic to co-develop an end-to-end solution using the largest protein target group of more than 10,000 proteins and the high throughput capabilities of current and future next-generation sequencing platforms. Meanwhile, the company’s new partnership with Nashville Biosciences — a wholly owned subsidiary of Vanderbilt University Medical Center — is expected to advance the development of medicine.

Notably, these innovative partnerships put Illumina in a position to enhance genome uptake and promote human health globally.

Update on GRAIL

After the acquisition of GRAIL on August 18, 2021, Illumina has two reportable divisions – Core Illumina and GRAIL. In 2021, GRAIL launched the Galleri test, the first clinically validated early detection blood test for multiple cancers in a screening cohort.

At present, GRAIL collaborates with multiple healthcare partners to ensure rapid and widespread availability of this test. With eight clinical studies currently underway or planned, Galleri’s comprehensive GRAIL evidence generation is by far one of the largest clinical genomics programs ever conducted.

GRAIL also announced a new collaboration with Premier’s PINC AI to advance clinical decision support technology. This collaboration will help clinicians identify patients at high risk of developing cancer who are likely to benefit from the Gallery test.

Powerful pipeline holding capabilities

Building on its 20-plus year track record of innovation, Illumina is currently focused on developing advanced chemistry, codenamed Chemistry X, which provides cycle times twice as fast, readings two times longer and three times greater accuracy. Per management, advanced Chemistry X will serve as the basis for all future platforms.

Illumina is set to launch a new bioinformatics technology on its DRAGEN platform in the first quarter, which can support DNA, RNA, methylation and Bayesian theory approaches to machine learning allowing for faster, cost-effective, and accurate analysis for any platform.

Furthermore, the company has unveiled new patented technologies for a cost-effective, high-accuracy long read workflow, codenamed Infinity, which will produce contiguous data up to 10 kb in length to process the final edge states of the genome. The administration believes that the Infinity Long Read technology will enable researchers to boost access to the remaining 5% of genetic regions.

share price performance

The stock has outperformed its industry in the past year. It gained 0.3% compared to the industry’s 31.3% decline.

Zacks order and key selection

Currently, Illumina has a Zacks rating of 3 (Hold).

Few of the top-rated stocks in the broader medical field that investors can consider AMN Healthcare Services, Inc. AMN, Apollo Endosurgery, Inc. Monkey and Patterson Companies, Inc. PDCO.

AMN Healthcare, which ranks Zacks #1 (strong buy), has a long-term earnings growth rate of 16.2%. The company’s earnings beat estimates in the subsequent four quarters, delivering a surprise 19.5% on average.

AMN Healthcare has outpaced its industry over the past year. AMN gained 48.3% versus 57.3% industry decline.

Ranked #2 by Zacks (Buy), Apollo Endosurgery has a long-term earnings growth rate of 7%. The company’s earnings beat estimates in the subsequent four quarters, delivering a surprise 25.6% on average. you can see The full list of Zacks #1 stocks today is here.

Apollo Endosurgery has topped the industry for the past year. APEN gained 103.3% against the industry’s 1% decline.

Patterson Companies, ranked second by Zacks, has a long-term earnings growth rate of 9.9%. The company beat earnings estimates in three of the subsequent four quarters and lost in one, delivering a surprise 3.7% average.

Patterson’s companies have underperformed their industry over the past year. PDCO stock is down 11.1% versus the industry rising 4.9%.

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