Illumina Earnings: Uncertain End Markets Pull Down 2023 Outlook, Despite Decent Results

Narrow-moat Illumina's second-quarter results exceeded expectations, but a challenging macroenvironment in life sciences, especially in China, has created more uncertainty in its near-term prospects and caused management to reduce its 2023 guidance. While disappointing, we have seen similar views from other life science companies this quarter, and our $269 fair value estimate does not look likely to change materially at first glance, given cash flows since our last valuation update.