(Reuters) - Illumina reiterated its 2024 revenue forecast on Thursday, expecting continued weak demand from its customers such as medical research labs and hospitals.

The San Diego, California-based company, whose tools and services are used in developing therapies and vaccines, has seen both a slowdown in demand from key markets such as China and cautious spending from its customers.

The gene sequencing machine maker continues to expect revenue growth from its core segment to be roughly flat this year compared with 2023, and still sees its adjusted operating margin to be about 20%.

The company said it is on track to divest cancer diagnostic test maker Grail and expects to finalize terms by the second quarter.

U.S. life sciences Illumina's first-quarter revenue was $1.08 billion, above analysts' estimate of $1.05 billion.

On an adjusted basis, it earned profit of 9 cents per share in the quarter ended March 31, narrowly beating analysts' average estimate of 4 cents per share.

Shares of the company fell to 2.4% at $121 in aftermarket trading.