Illumina, Inc. (NASDAQ:ILMN) shares jump over 12% by Wednesday’s market open as the company raised its full year forecast in its second quarter earnings report.
The company had posted strong second quarter results on Tuesday, and with the increased demand for new gene-sequencing tech, NovaSeq, caused shares to jump.
Illumina posted a revenue of $662 million, 10 percent increase from last year’s second quarter.
The company in January revealed its NovaSeq sequencing platform, which is expected to be faster and cheaper than previous platforms.
While Illumina's older HiSeq technology brought down the cost of sequencing to $1,000 per human genome, NovaSeq is expected to eventually reduce it to $100, according to Reuters.
The possible cheap cost of NovaSeq helped with strong second quarter results for Illumina.
“We are pleased with our strong Q2 results,” said Francis deSouza, President and CEO. “Interest in the NovaSeq platform exceeded our expectations during the quarter. As a result, we have updated our 2017 revenue growth projections to reflect the market demand for NovaSeq and our positive outlook for the rest of the business.”
The company had said it shipped and installed 80 NovaSeq instruments in the second quarter.
Analysts on average were expecting around 50 installations, Cowen & Co analysts said.
"We're seeing the beginning of the HiSeq replacement cycle, with 2/3 of NovaSeq orders coming from HiSeq and HiSeq X labs accessing NovaSeq's improved sequencing costs and capabilities," CEO Francis deSouza said on a post-earnings call on Tuesday.
With the strong second quarter results, Illumina raised its guidance for the rest of the year.
Illumina estimates approximately a 12 percent revenue growth. GAAP earnings per diluted share is forecasted to be $5.36 to $5.46 and the company also expects non-GAAP earnings per diluted share to be $3.60 to $3.70.