Illumina Inc. (ILMN) said late Wednesday that second-quarter revenue will be lower than its own guidance, sending shares down by more than 11% today.
The company now expects to report sales of about $161 million, compared to its previous outlook of $168 million to $173 million.
Illumina cited lower foundation funding in a few key accounts, coupled with order delays linked to stimulus funding under the American Recovery & Reinvestment Act (ARRA), as reasons for the lower-than-expected performance.
The genetic analysis instrument producer also widened its full-year revenue outlook to between $690 million and $720 million, compared to the previous forecast of $700 million to $720 million.
The company, however, said it expects stimulus funding to have a positive impact on fourth-quarter and 2010 results.
Meanwhile, the consensus forecast for the company’s full-year earnings has moved down a penny over the past month to 89 cents per share.
ILMN, a Zacks #3 Rank (“Hold”) stock, is trading on extraordinarily high volume of approximately 9.4 million, compared to the average daily volume of about 1.4 million.
“ILMN” Free Stock Analysis: Buy? Sell? Hold?
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