Illumina (ILMN) Stock Falls Even After Beating Earnings

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illumina ILMN stock newsIllumina, Inc. (NASDAQ: ILMN)

Illumina stock is having a tough day in the market today; even after beating analyst projections with the release of their earnings report. So, today we’ll take a look at the details from the earnings report, how the stock has reacted so far and why, and finally, we’ll talk about the long term outlook for ILMN. So, let’s get right to it…

Illumina Beats Expectations With Q1 Earnings

For the complete details on earnings, click here. Here’s a quick overview of what we saw in the report…

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  • Earnings Per Share – Earnings per share beat estimates by over 26%; coming in at $0.92. In the same quarter last year, the EPS came in at $0.40.
  • Revenue – ILMN reported revenue at $539 million in the quarter; a great year over year improvement from $421 million.
  • Sales – Illumina reported that sales increased by 28% in the first quarter.
  • Research And Development Expenses – R&D expenses were a bit higher this quarter than they were in the same quarter last year. R&D expenses came in at $92 million; compared to $77 million in the same quarter last year.

What We’ve Seen In The Market

Unfortunately for Illumina, the positive earnings report simply wasn’t met with good news in the market. After a steep climb yesterday, the stock is down, and down in a massive way today. Currently (1:43), ILMN is trading at $188.22 per share after a loss of 5.57% so far today.

What We Can Expect Moving Forward

The fact that the stock has fallen so far is absolutely baffling to me. The reality is that the market is a series of overreactions; however, this one is big. With that said, I think ILMN is presenting a great opportunity for gains. Here’s the bottom line…Investors like profits. While short interests may be sending the stock down today, with the release of the Q1 earnings report, ILMN proved that they are capable of generating massive earnings. In the long run, this should lead to uptrends in the stock!

What Do You Think?

Where do you think Illumina stock is headed and why? Let us know in the comments below!

1 COMMENT

  1. I like the fact that you honestly have come out with the market reaction to this stock is baffling. It’s baffling to me too. Too many times I hear some self proclaimed know it all try and make sense of the market reactions when the reality is nobody knows. This stock will eventually go trending up until the next earning release. At least that’s what I’m betting on.

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