(Reuters) – Illumina reiterated its 2024 revenue forecast on Thursday, expecting continued weak demand from customers such as medical research labs and hospitals.
The San Diego, Calif.-based company, whose tools and services are used to develop therapies and vaccines, has seen both a slowdown in demand in key markets such as China and cautious spending by of its customers.
The maker of genetic sequencing machines continues to expect revenue growth in its core segment to be roughly flat this year compared to 2023, and still sees its adjusted operating margin being around 20%.
The company said it was close to divesting cancer diagnostic test maker Grail and hoped to finalize terms by the second quarter.
Illumina’s first-quarter U.S. life sciences revenue was $1.08 billion, above analysts’ estimate of $1.05 billion. dollars.
On an adjusted basis, it earned 9 cents per share in the quarter ended March 31, narrowly beating analysts’ average estimate of 4 cents per share.
The company’s shares fell 2.4% to $121 in after-market trading.
(Reporting by Unnamalai L in Bangalore; editing by Alan Barona)
