Illumina Profit Drops Amid Climbing Expenses

Genetic-sequencing company Illumina Inc. posted a 34% decline in profit for its first quarter amid climbing expenses.

Expenses rose 39% to $276 million, with research and development expenses climbing to $124 million from $91.8 million in the prior-year period.

On the heels of the latest results, the San Diego maker of gene-sequencing machines lowered its annual guidance for adjusted earnings on a per-share basis to $3.35 to $3.45, from a previous estimate of $3.55 to $3.65. Analysts surveyed by Thomson Reuters expected $3.48 a share.

For the current quarter, Illumina projects adjusted earnings of 72 cents to 74 cents a share on revenue of $590 million to $595 million. Analysts forecast 84 cents and $611 million, respectively.

Shares of the company slipped 3.7% to $128.67 in after-hours trading Tuesday.

In all, for the quarter ended April 3, Illumina earned $89.6 million, or 60 cents a share, compared with $136.7 million, or 92 cents a share, a year earlier. Earnings excluding items were 71 cents a share, down from 91 cents.

Revenue rose 6% to $572 million.

Analysts surveyed by Thomson Reuters expected earnings of 74 cents a share on revenue of $593 million.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

May 03, 2016 17:45 ET (21:45 GMT)

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