Illumina shares plummeted by a quarter after it warned on Monday that its third-quarter sales were likely to come in below its own forecast and Wall Street’s due to a drop in revenue from a type of genetic sequencing instrument.
The diagnostic group said that it expects sales in the third quarter to have risen 10 per cent on a year-on-year basis to $607m, compared with an earlier estimate of $625m – $630m. That was also shy of analyst expectations of $628m.
Illumina said the shortfall in revenue came as a result of a bigger-than-expected year-on-year dip in sales of high-throughput sequencing instruments, or devices that can analyse a very high number of DNA molecules at the same time.
Shares of the California-based company fell as much as 26 per cent in after hours trading. They were down by 3.7 per cent for 2016 as of Monday’s close.