Mizuho Securities Remains Sidelined on Illumina (ILMN) Following 1Q Miss

Mizuho Securities maintained a Neutral rating on Illumina (NASDAQ: ILMN), and cut the price target to $138.00 (from $150.00), following the company's 1Q earnings report. Illumina had already negatively preannounced 1Q16 results and lowered guide. Most of the miss in the quarter was attributable to orders that didn’t turn to revenue. 2Q revenue guidance of $590mm- $595mm is below consensus of $606mm and implies a more back-end loaded year. Full year EPS guidance of $3.35 to $3.45 is down from prior guidance of $3.55- $3.65 including $0.20 dilution from GRAIL and Helix, an increase of $0.05.

Analyst Eric Criscuolo commented, "We remain on the sidelines as Illumina works out its operational issues in Europe and enhances its sales tactics to ensure orders translate to revenue- problems that led to the negative pre-announcement. We're lowering our PT due to the mis-steps, lower growth and lower estimates. While we think the sequencing market remains robust with vast potential, the newer markets that will drive future growth (like diagnostics) are still evolving and not as easy to penetrate while ILMN's business becomes more complex."

For an analyst ratings summary and ratings history on Illumina click here. For more ratings news on Illumina click here.

Shares of Illumina closed at $133.65 yesterday.

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