Illumina (ILMN  ) gave an early look at its Q4 earnings and guidance for 2022 at the JPMorgan (JPM  ) annual healthcare conference which sent shares up more than 10%. Last year, sales grew by 39%, and it issued 2022 guidance that came in above expectations.

Overall, Illumina expects that revenue next year should increase between 14% to 16%, reaching around $5.2 billion with earnings per share coming in between $4 and $4.20 per share. It's a relief for Illumina shareholders as the stock is down by 25% from its highs along with weakness in growth, biotech, and genomics stocks. These sectors have been victims of rising rates and multiple deflation in many parts of the market.

Illumina's products are integral to the genomics industry. They are used for sequencing DNA which is an elemental part of any genomics process. Therefore, the company's positive results are an indication that the industry continues to expand regardless of market fluctuations.

The genomics sector is considered to have massive potential in terms of more accurate diagnosis, treatments that are personalized, and eventually the ability to fix genetic defects at the molecular level. Therefore, it's attracted considerable investor interest. As tends to happen in these bull markets, the sector's growth potential is valid, but investors have overbid many of the stocks. And, it's likely that only a handful will be successful in terms of delivering positive returns for investors.

However, Illumina is a way to bet on the entire industry's growth rather than the difficult task of finding winners and losers. The company's largest segment is its instruments division which saw a 25% increase in sales to $1.9 billion. The company also sells higher-margin software products and services which are making up an increasing share of its overall business.

Another positive is that the use of genomic tests is increasing especially for the diagnosis of cancerous tumors to help choose the best treatment options. Reimbursement for these tests is also increasing with many states and insurance companies paying for them.

The company is also working on new technologies that would drop the price of sequencing a genome to as low as $100 according to CEO Francis de Souza. Of course, the rapid vaccine development for the coronavirus and tracking of the variants would not have been possible without genetic testing.