Illumina Inc. (NASDAQ: ILMN) watched its shares slip early on Tuesday after the company issued an update on its sales for the third quarter. Unfortunately numbers came in below what analysts were looking for, and as a result investors sent the stock lower.
The company announced that estimated third-quarter revenue totaled roughly $607 million, a 10% increase compared to $550 million in the third quarter of 2015.
Keep in mind that this is an unaudited estimate, which is based on management’s preliminary financial analysis. It is also lower than the third-quarter revenue guidance of $625 million to $630 million.
The consensus estimates from Thomson Reuters call for $628.06 million in revenue for the third quarter.
The shortfall in quarterly revenue was driven by a larger than anticipated year-over-year decline in high throughput sequencing instruments. As a result, the company expects fourth quarter revenue will be flat to slightly up sequentially.
The third-quarter financial results are expected to be released on November 1.
Excluding Tuesday’s move, Illumina has underperformed the broad markets, with the stock down about 4% year to date. Over the past 52 weeks, the stock is actually up 25%.
Shares of Illumina closed Monday at $184.85, with a consensus analyst price target of $155.67 and a 52-week trading range of $127.10 to $196.47. Following the update, the stock was down about 26% at $136.69 in early trading indications on Tuesday.