Illumina Shares Dive On Weak 3Q Results, '09 View

NEW YORK (AP) — Shares of Illumina Inc. skidded Wednesday after the maker of genetic analysis instruments reported third-quarter results and 2009 guidance below analyst estimates.

Illumina stock lost $8.02, or 19.3 percent, to $33.64 in heavy afternoon trading. The stock has ranged from $18.82 to $44.07 over the past year.

Analysts said Illumina's results were hurt by three factors: Delays in disbursement of economic stimulus funds, a slowdown in genetic research and weaker reagent sales due to manufacturing problems.

Quintin Lai of Robert W. Baird and Co. downgraded Illumina shares to "Neutral" from "Outperform" and lowered his estimates. He noted that the San Diego company also missed Wall Street expectations in the second quarter.

Other analysts were more positive. Deutsche Bank analyst Ross Muken reiterated a "Buy" rating, saying Illumina has a strong position in the market and could receive a substantial benefit from stimulus money.

He said that an anticipated year-end surge in grant approvals didn't appear, and that $10 million in stimulus related funding will likely come in 2010 rather than the fourth quarter of 2009.