Illumina Q3 - Impressive Growth

Illumina reported its third-quarter numbers last week, showing that sales exceeded expectations. The gene-sequencing company has now raised its growth guidance three times this year, with the latest one estimating sales to rise by 36% for the whole of 2021.

The company reported third-quarter sales of $1.11 billion, up an impressive 40% from a year earlier. Earnings rose by nearly 50% from a year ago to $221 million, notwithstanding the share dilution from Illumina's acquisition of Grail, the cancer blood-screening firm. Grail has a test called Galleri which can detect more than 50 kinds of cancer.

Illumina enjoyed a significant increase in demand for DNA analysis for people about to undergo medical treatment. They also provide testing for birth defects. Illumina's customers are the laboratories that sell these DNA-reading services. They sell them the machines as well as the associated consumables for each test.

We like the company's unique niche. They survived the pandemic thanks to their rock-solid balance sheet, now it's onwards and upwards!