The stock lost $1.43, or 3.9 percent, to reach $35.73 on the Nasdaq in afternoon trading. Shares have traded between $19.90 and $45.87 over the last 52 weeks.
On Thursday, the San Diego-based company reported a doubling of fourth-quarter revenue to $60.4 million and a profit of 34 cents per share compared with 1-cent per share a year prior.
Illumina forecast it would see revenue in 2007 above expectations, at a range between $295 million and $315 million and projected earnings -- including options expenses -- of 52 cents per share, shy of Wall Street's outlook for 57 cents per share. The company said its annual results would be shaved by about $20 million to $25 million for stock-options costs.
Additionally, predictions of a doubling in research and development costs to between $63 million and $73 million, as well as a sharp increase in selling, general and administrative costs, dragged down shares.
The company forecast first-quarter earnings of 7 cents per share, versus the 10 cents per share profit Wall Street is anticipating, and revenue of $64 million to $68 million.
Goldman Sachs analyst May-Kin Ho reaffirmed a "Neutral" rating for the stock in a note to investors late Friday, but cut earnings expectations to 60 cents per share and 96 cents per share from 73 cents per share and $1 per share, respectively for 2007 and 2008. Also, the target price calculation shifted to 2008 instead of 2007, Ho wrote and is now $41 instead of $36.
Illumina is involved in an ongoing patent lawsuit with rival Affymetrix Inc. and the trial could hang over the company for the long-term, Ho wrote.
"We expect increasing pressure on Illumina shares ahead of the trial against Affymetrix, which begins March 5," Ho wrote. "Appeals are likely and the final decision may take years to reach. A negative legal outcome could result in significant payments to Affymetrix and/or loss in sales."
posted by doublezero at
12:07 PM
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