Illumina is a genomics firm that produces systems and non-reusable tools to sequence the genome to help researchers learn more about the genetic variations that sometimes lead to disease.
“It is quite an exciting time in genomics/sequencing,” Muken added. “Kudos to management as well for the superb execution as it is one thing to have a sizable opportunity in front of you and another thing to make it a reality in the consistent fashion they have. The sum of all this makes (Illumina) challenging to not own despite the current growth tantrum.”
Fueling the surge on Tuesday, Illumina revealed second quarter sales that were $42 million above expectations. The firm’s service revenue was topped by 18% and sales of new-generation sequencing consumable tools came in ahead of forecasts by 4%.
Genomic sequencing is also becoming a booming business in the health care industry. Deutsche Bank analyst Dan Leonard noted robust growth in the quarter, with demand for consumable tools for sequencing rising 35% year over year, including $13 million of stocking orders from China. Even excluding stocking orders, a growth of 31% beat out expectations for 25% growth.
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