The genetics testing tools company Illumina, reported its Q1 numbers last week, showing an earnings surprise growth of 30.16%.The genetics company posted revenues of $859 million and earnings per share of $1.64 for the first quarter; beating analysts expectations for the fourth time in a row thanks to the stable demand for its gene sequencing machines.
CEO and President of Illumina Francis deSouza said:
"We are doing everything we can to support our employees, our customers, and communities during this pandemic…while the near-term headwind is strong, the opportunity for sequencing and genomic insights is clearer than ever. We believe that the global community will emerge from this experience more determined and more united to prepare for the next pandemic, and that genomics will be integral to that effort."
The company announced the Illumina SARS-CoV-2 Data Toolkit, a new suite of data analysis tools and workflow functionality for researchers working with the virus using its next-generation sequencing (NGS). The company also donated a bunch of sequencing machines and related consumables to support with sequencing capabilities in up to ten African countries.
Illumina was one of the many businesses that has had to withdraw their revenue and earnings guidance due to the Covid-19 pandemic, which comes as no surprise. However,
the business is going forward with a $750 million share-buyback program of which $187 million has already been executed in the first quarter; a very brave move considering that cash is king in these trying times.
The business still has a $2 billion cash buffer as well as $1.34 billion in short-term investments which will be very critical in seeing the organisation through this pandemic. This business has all the characteristics of a resilient company during times of trouble; a strong balance sheet, a unique but resilient product, and the ability to adapt to change. I wouldn't rush to sell my shares.