Illumina (ILMN): Checks Below Expectations - Piper Jaffray

Piper Jaffray analyst, William Quirk, found 23 HiSeq X installs during the quarter, below the 26 modeled estimate. He also found 6 new HiSeq X customers (2 have not yet received instruments). The backlog exiting 2Q16 is 93 HiSeq Xs, well above the backlog typically seen in checks (average backlog is 31 systems). The analyst's HiSeq 3000/4000 checks came below expectations with only finding 15 new systems vs. ~30 he initially found. The analyst is modeling revenue $1.0M above the Street (+10.1% growth) and EPS in line. He is leaving estimates unchanged. Said another way, he is not expecting much 2Q16 upside, but the robust HiSeq X backlog and China Precision Medicine Program is exceptionally encouraging.

No change to the Overweight rating on Illumina (NASDAQ: ILMN) or price target of $161.

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 $145.86 yesterday.

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