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Feb 6, 2025 5:03 AM - Danny Green
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Illumina Inc. (NASDAQ:ILMN) is a prominent player in the genomics industry, specializing in the development and manufacturing of tools for genetic analysis. The company is known for its innovative sequencing and array-based solutions, which are used in various fields such as research, clinical, and applied markets. Illumina faces competition from companies like Thermo Fisher Scientific and Agilent Technologies, which also operate in the life sciences sector.
On February 6, 2025, Illumina reported earnings per share (EPS) of $0.91, slightly missing the estimated $0.92. This figure represents a significant year-over-year increase of 550% for the quarter ended December 2024. Despite this growth, the company's revenue of approximately $1.071 billion fell just short of the estimated $1.072 billion. The revenue also marks a 4.1% decline compared to the same quarter last year, highlighting challenges in maintaining sales momentum.
Over the past 30 days, analysts have revised the consensus EPS estimate upward by 0.8%, indicating a positive reevaluation of Illumina's financial performance. Such revisions are important as they can influence investor behavior and impact the short-term price performance of the stock.
Illumina's price-to-sales ratio stands at about 4.50, indicating that investors are willing to pay $4.50 for every dollar of sales. The enterprise value to sales ratio is approximately 4.92, reflecting the company's valuation relative to its revenue. Additionally, the enterprise value to operating cash flow ratio is around 31.00, showing how many times the operating cash flow can cover the enterprise value. These metrics provide insight into how the market values Illumina's revenue and cash flow.
The company's financial health is further illustrated by its debt-to-equity ratio of about 1.26, suggesting a moderate level of debt relative to its equity. Illumina's current ratio is approximately 2.43, indicating a strong ability to cover its short-term liabilities with its short-term assets.
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