Genomics company Illumina (NASDAQ:ILMN) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 3% year on year to $1.06 billion. Its non-GAAP profit of $0.36 per share was 64.4% below analysts’ consensus estimates.
Shares of genomics company Illumina (NASDAQ:ILMN) jumped 3.7% in the pre-market session after analysts at Robert W. Baird increased their price target on the life sciences company's stock to $105.00. While the firm maintained its 'neutral' rating on the shares, the new price objective represented a significant increase from the previous target of $84.00. This analyst action followed Illumina's recent quarterly report, where the company posted earnings and revenue that narrowly beat Wall Street's consensus estimates. The life sciences company reported earnings per share of $0.97 and revenue of $1.04 billion. This performance, coupled with the revised price target, appeared to have bolstered investor confidence.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Shares of genomics company Illumina (NASDAQ:ILMN) fell 4.2% in the morning session after a Citi analyst downgraded the stock to 'Sell' from 'Neutral' and lowered the price target.
Shares of genomics company Illumina (NASDAQ:ILMN) fell 3.6% in the afternoon session after the major indices pulled back (Nasdaq -0.8%, S&P 500 -0.77%), largely due to escalating concerns surrounding the July 9th deadline for new US tariffs, now amplified by specific announcements.
Illumina’s first quarter results reflected ongoing challenges in the global genomics market, as the company’s performance fell short of market expectations, prompting a negative reaction from investors. Management attributed recent revenue declines to a combination of restricted instrument exports to China, a constrained research funding environment in the U.S., and evolving trade dynamics. CEO Jacob Thaysen acknowledged these headwinds, emphasizing, "Developments around China, U.S. funding uncertainty, and global trade dynamics have introduced new pressures for our customers." Despite these pressures, Illumina highlighted continued strength in clinical markets and ongoing adoption of its NovaSeq X platform.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
What a brutal six months it’s been for Illumina. The stock has dropped 33.6% and now trades at $89.03, rattling many shareholders. This may have investors wondering how to approach the situation.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Genomics company Illumina (NASDAQ:ILMN) reported Q1 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 1.4% year on year to $1.04 billion. Its non-GAAP profit of $0.97 per share was 3.2% above analysts’ consensus estimates.
On Monday, Cathie Wood-led Ark Invest sold shares of Tesla and Palantir, amidst competition and data misuse concerns. Ark also made significant trades in other companies, such as eToro and Illumina.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Illumina (NASDAQ:ILMN) and its peers.
A number of stocks fell in the afternoon session after the major indices fell further in the afternoon (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit. A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt.
