Illumina ILMN Earnings Analysis

Earnings Analysis for ILMN: Last 3 Years

Revenue Analysis

Over the past quarters, Total Revenue and Operating Revenue have shown fluctuating trends:

  • Mar 2024: $1,076 million
  • Dec 2023: $1,122 million
  • Sep 2023: $1,119 million
  • Jun 2023: $1,176 million
  • Mar 2023: $1,087 million

This indicates a general upward trend in total income streams despite periodic fluctuations.

Gross Profit has mostly increased over time, reflecting moderately efficient cost management in revenue generation:

  • Mar 2024: $667 million
  • Dec 2023: $674 million
  • Sep 2023: $684 million
  • Jun 2023: $732 million
  • Mar 2023: $655 million

Cost Management

Cost of Revenue and Total Expenses also showed wider variances:

  • Cost of Revenue fluctuated between $409 million in Mar 2024 and $448 million in Dec 2023.
  • Total Expenses saw a peak in Jun 2023 at $1,252 million, while the lowest was in Mar 2023 at $1,151 million.

Profitability Analysis

EBITDA ranged from as low as -$655 million in Sep 2023 to $50 million in Jun 2023, signaling severe fluctuations in operational profitability. Operating Income and Pretax Income were also negative across most intervals, indicating ongoing operational challenges.

Net Income results were significantly negative in several quarters with the most substantial loss being -$754 million as reported in Sep 2023.

Cash Flow Indicators

Reconciled Depreciation maintained a consistent range between $107 million and $109 million, ensuring that cash flows related to asset depreciation are stable.

Interest Expense hovered around $18 million to $19 million, impacting the financial expenses negatively but relatively stable.

Taxation

Tax Rate showed some consistency for the most part but deviated in Sep 2023 to a mere 3.6%. Tax Provisions saw dramatic shifts, with a drastic reversion in Mar 2023 with -$81 million to positive amounts in other quarters.

Shareholder Metrics

Diluted and Basic EPS remained consistent in their negative trajectory.

  • Mar 2024: -$0.79 per share
  • Dec 2023: -$1.11 per share
  • Sep 2023: -$4.77 per share

Average Shares stood at about 158-159 million across various periods, indicating no significant buybacks or dilutions.

Conclusion

The financial performance of ILMN over the reviewed periods indicates significant challenges with operational efficiency, cost management, and periodic heavy losses. Strategic initiatives should focus on improving operational profitability, managing costs more effectively, and stabilizing income streams to mitigate the financial downturns and improve shareholder returns.