Illumina Inc. (ILMN) beat analysts’ expectations on revenue and earnings for the third quarter of 2018. The stock was up 0.59% as of 4:45 pm ET.
Revenues rose 20% to $853 million versus the same period last year. On a GAAP basis, net income grew to $199 million or $1.33 per share from $163 million or $1.11 per share in the prior-year quarter. Adjusted net income was $227 million or $1.52 per share.
Cash flow from operations grew to $292 million and gross margin increased to 70% during the quarter. The company also saw increases in R&D and SG&A expenses of 18% and 17% respectively.
Francis deSouza, President and CEO said, “Illumina’s strong performance in the third quarter of 2018 reflected growth across our sequencing and arrays portfolios. Sequencing system revenue of $138 million was the strongest since 2015, reflecting strong demand within our sequencing family from the NovaSeq, the most powerful and flexible sequencer ever, to the iSeq, our most accessible and easiest-to-use sequencer.”
During the quarter, Illumina reached a legal settlement with Premaitha. Both companies also entered into a supply and license agreement, under which Premaitha will license Illumina’s IP for NIPT, launch an IONA test that runs on Illumina sequencing technology, and work with customers to migrate to Illumina systems.
For the full year of 2018, the company expects revenue to grow approx. 20%. GAAP EPS is expected to be $5.32 to $5.37 while adjusted EPS is expected to be $5.70 to $5.75.