Illumina Inc

Q4 2024 Financial Performance: Illumina reported Q4 revenue of $1.1 billion, reflecting a year-over-year growth of approximately 1%. The growth was primarily driven by a 2% increase in sequencing consumables revenue, attributed to the successful transition to the NovaSeq X series, which averaged a pull-through of $1.3 million per system. The company's revenue exceeded expectations due to high NovaSeq X shipments, with 91 instruments placed in the quarter, bringing the installed base to 630.

2025 Revenue Guidance: For the full year 2025, Illumina expects revenue growth in the low single-digit percentage range on a constant currency basis, with a normalized operating margin of approximately 23% (an improvement of 170 basis points from 2024) and a diluted EPS in the range of $4.50 to $4.65. This guidance does not account for potential disruptions resulting from recent Chinese governmental actions.

Challenges in China: China represents approximately 7% of Illumina’s global revenue. Despite recent governmental scrutiny, CEO Jacob Thaysen expressed confidence in the growth potential in China, citing an ongoing dialogue to reach a resolution. However, without clarifying implications on the business, this presents a risk that could impact future revenue growth.