2024-02-23 03:42:37 ET
Summary
- Illumina's stock declined 19% post "Sell" recommendation; S&P 500 rose 10%, highlighting concerns over GRAIL acquisition legal risks.
- 2023 revenue fell to $4,504 million from $4,584 million, with gross margins dropping from 69.6% in 2021 to 60.9%.
- Facing stagnant revenues and rising SG&A expenses, Illumina still trades at a premium (EV/Sales 5.08 vs. sector median 3.98).
- Despite a solid balance sheet and debt reduction efforts, operational challenges and competitive pressures reinforce a "Sell" recommendation.
Illumina's Revenue Riddle: Unpacking Shrinking Margins
Illumina's (ILMN) stock is off 19% since my "Sell" recommendation back in September. For reference, the S&P 500 ( SPY ) is up over 10% in the same time period. Back then, I expressed concern over "legal headwinds linked to the GRAIL acquisition" that "pose potential financial and reputational risks."...
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Illumina: Stagnant Revenues And Shrinking Margins Amidst Rising Competition