Latest news with #Thaysen
Yahoo
5 hours ago
- Business
- Yahoo
ILMN Q1 Earnings Call: Clinical Growth and Cost Actions Offset Research and China Headwinds
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. Is now the time to buy ILMN? Find out in our full research report (it's free). Revenue: $1.04 billion vs analyst estimates of $1.04 billion (1.4% year-on-year decline, 0.5% beat) Adjusted EPS: $0.97 vs analyst estimates of $0.94 (3.2% beat) Adjusted EBITDA: $272.6 million vs analyst estimates of $258.3 million (26.2% margin, 5.5% beat) Management lowered its full-year Adjusted EPS guidance to $4.25 at the midpoint, a 7.1% decrease Operating Margin: 15.8%, up from 11% in the same quarter last year Organic Revenue fell 1.2% year on year, in line with the same quarter last year Market Capitalization: $13.45 billion Illumina's first quarter results reflected the resilience of its clinical sequencing business and ongoing adoption of its NovaSeq X platform. Management highlighted continued momentum in clinical instrument placements, with CEO Jacob Thaysen noting, 'NovaSeq X instruments continue to perform well, exceeding our expectations with another quarter of over 60 placements in Q1.' While research and academic customers showed more conservative purchasing behavior due to U.S. funding uncertainty, Thaysen attributed the company's performance to operational execution and a stable base of high-throughput consumable usage. CFO Ankur Dhingra added that early year ordering activity—particularly long-range purchase commitments—was stronger than in prior years, providing a measure of stability despite broader macroeconomic challenges. Illumina's ability to maintain operational execution and product adoption under challenging market conditions was a key theme throughout the call. Looking forward, management's outlook for the year is shaped by several headwinds, including new export restrictions to China, a constrained research funding environment, and incremental tariffs on imported products. Thaysen acknowledged that these factors have led to a downward revision of full-year earnings guidance, stating, 'We are revising our guidance to reflect both the headwinds and the proactive steps we are taking to protect earnings.' The team emphasized ongoing cost reductions, supply chain optimization, and targeted pricing actions as central to mitigating these pressures. Dhingra explained that the company expects to offset about half of the tariff impact in 2025 and sees stronger growth opportunities in clinical markets and new product launches as key to future performance. Management remains focused on advancing its innovation pipeline, particularly in multi-omics, while closely monitoring evolving regulatory and funding developments. Management attributed the quarter's results to continued clinical market strength, the successful transition to NovaSeq X, and proactive cost controls, while addressing challenges in China and U.S. research funding. Clinical placements drive growth: Illumina's clinical segment continued to show robust demand, with more than 60 NovaSeq X instruments placed in Q1. This transition is progressing especially well among clinical customers, which management sees as a key lever for volume-driven revenue growth as clinical sequencing expands. Research funding pressures: The company noted that research and academic customers became more conservative with consumables purchases in Q1, driven by uncertainty around U.S. government research funding. This softness was most pronounced in the mid-throughput segment, which is more sensitive to delayed instrument purchases and lower utilization. China export restrictions: Recent export controls have limited Illumina's ability to ship sequencing instruments to China, resulting in a significant reduction in projected revenue from the region. Management will now provide separate guidance for Greater China to clarify the underlying performance of the rest of the business. Tariff impact and mitigation: New U.S. import tariffs on goods from Singapore and certain other countries are expected to increase Illumina's costs. The company is actively working to offset these through supply chain changes and selective price increases, though only partial mitigation is anticipated in 2025. Cost reduction initiatives: Illumina implemented a $100 million global cost reduction program in March, which is expected to result in flat or slightly down operating expenses for the rest of the year. Management believes these measures, combined with operational discipline, will help protect margins amid ongoing revenue headwinds. Looking ahead, Illumina's guidance is shaped by geopolitical headwinds, funding constraints, and ongoing cost management, with clinical market expansion and innovation serving as primary growth drivers. Clinical market momentum: Management expects continued strength in clinical sequencing to partially offset declines in research-driven revenue. Expanded adoption of newer platforms like NovaSeq X within clinical settings is anticipated to drive higher consumable usage and more predictable revenue streams. Tariff and supply chain adjustments: The company is implementing supply chain optimizations and targeted pricing actions to address increased costs from tariffs. Management stated that about half of the tariff impact will be mitigated in 2025, with further actions expected to improve the cost structure in 2026. Ongoing innovation pipeline: Illumina highlighted upcoming product launches—including a new single-cell CRISPR research tool and early access proteomics solution—as key to supporting long-term growth. These innovations are designed to expand the multi-omics ecosystem and open new market opportunities, despite near-term market uncertainties. In the quarters ahead, our analysts will watch (1) the pace of NovaSeq X adoption and its effect on clinical consumable volumes, (2) the company's ability to mitigate tariff-related cost increases through supply chain and pricing actions, and (3) the impact of ongoing cost reduction initiatives on operating margins. Key product launches and developments in the regulatory environment for China and research funding will also be important signposts. Illumina currently trades at a forward P/E ratio of 18.4×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Al Etihad
17-04-2025
- Business
- Al Etihad
Genomics, AI shape future of personalised, preventive healthcare in UAE
18 Apr 2025 00:27 SARA ALZAABI (ABU DHABI)The UAE has been making significant strides towards personalised, preventive healthcare — and behind the major projects in the sector are collaborations with global institutions and innovators. Genomics and artificial intelligence (AI) are playing a central role in shaping the future of health and enhancing patient-centred care, experts and delegates at the Abu Dhabi Global Healthcare Week (ADGHW) told Aletihad on Thursday. 'Genomics is a fundamental part of biology; understanding our genome helps us identify risks for diseases like cancer and heart conditions. It also shows us which medicines work best for each individual, said Jacob Thaysen, CEO of Illumina, an American biotech company. Illumina has been at the forefront of sequencing the entire UAE population's DNA, a groundbreaking project aimed at creating personalised health profiles. 'Now, our focus is on turning these insights into real steps to improve health and longevity,' Thaysen said. 'By understanding polygenic risk scores, people can take action to avoid diseases like cancer.'The UAE is the first country in the world to implement such a large-scale genomic project, Thaysen said. 'It is setting the stage for the future of healthcare worldwide.'Pharmaceutical firm Eli Lilly and Company is also among those who have established strong ties with UAE health authorities, particularly the Department of Health – Abu Dhabi.'We focus on three main therapeutic areas: diabetes, obesity, neurodegenerative diseases such as Alzheimer's, and oncology, particularly cancer,' said Nadim Hasbani, Head of Corporate Affairs Strategy, Middle East and Turkey areas at Eli Lilly and firm signed two partnerships with the DoH in 2024. 'The first is focused on Alzheimer's, to establish a Centre of Excellence in Abu Dhabi. The second MoU addresses obesity, exploring alternative solutions like medications instead of relying solely on surgery.'Meanwhile, healthcare provider Mediclinic — another participant at the ADGHW — is focused on promoting a healthcare system built around wellness. 'Prevention is better than cure. Mediclinic is absolutely committed to prevention and to ensuring a balanced healthcare ecosystem,' said Barry Bedford, COO for UAE at Mediclinic Middle East. Explaining the role of AI and technology in this mission, he said: 'AI can help us predict and prevent conditions—but we still need that compassionate human interaction between doctor and patient. Itis critical that we do not take the compassion out of healthcare.'
