Inc. isn’t a company
name that rolls off the tongue of the average American. But
their products, services and technologies
have been well known in the scientific community for 70 years and most
have crossed your path at some point, you may have just not known it…
their diverse business,
which is focused on the periphery of health and human sciences or the
just one strong public brand, keeps them hidden from the average
investor. This quiet but strong stock might be worth a
look as preventive care, environmental health consciousness and overall
awareness increases globally.
PerkinElmer is an international company with operations in 150
7,000 employees. They are focused on
improving the health and safety of people and the environment.
PerkinElmer’s mission ranges
from enabling discovery of more effective diagnostics and therapies to
sure that our food, water, consumer products and the places where we
work are safe from contaminants. They currently hold over 2,900 related
PerkinElmer is divided into
two segments: Human Health and Environmental Health.
The human health division
develops technologies that touch over 31 million births and pregnancies
with over 300 million screened to date.
Their pre- and neo-natal screening solutions are widespread, and
according to the company save over 50 babies’ lives each day.
In addition, they are the
world’s number one cellular imaging technology company and leading
amorphous silicon digital x-ray detectors used to preserve healthy
cancer patients. They are also the world's
leading provider of several solutions for digital x-ray systems and an
part of enabling research into over 75% of drug pathways for GPCR and
If all this is Greek to you,
you’re not alone. Think about PKI as an
indispensible catalyst and technology/solutions provider that helps
medical discovery into a viable cure or treatment. The
company simply strives to improve the
quality of life for the human race by filling voids and improving
On the environmental side they
produce many environmental monitoring technologies that help keep our
clean. PKI also provides analytical techniques for several
related industries including Inorganic, Molecular Spectroscopy and
Analysis and Gas Chromatography.
Their instruments and
services are essential components for efficient, renewable energy and
PKI is a mid-cap ($3.08 billion) company that is trading at about 13.5
(expectations for next quarter) earnings.
became a Zacks Rank #1 Strong Buy
on February 7th, 2011. The company reported a quarterly
sales increase of 19% at their last earnings report and saw a 51% rise
for the same period. Annual sales were up 15% compared to
with total sales of roughly 1.92 billion in FY2011. PKI
from $3.25 in FY2010 to $0.06 in FY2011.
The results for the latest quarter included a $0.40 per share charge
related to the recent acquisition of Caliper Life Sciences, pension
liabilities of divested businesses and $0.61 per share of tax charges
to Caliper acquisition.
is expected to earn $2.02 in
FY2012 according to the Zacks Consensus Estimate. The company
earnings higher than expectations at their last report on February
PerkinElmer reported a loss for Q42011, but earnings and forecasts were
than expected. Revenues for the quarter grew 15 percent to $540.19
$469.97 million in the same quarter last year.
the year PKI saw a huge jump
in general and administrative expenses, most likely due to their
acquisition. They did see growth in both
divisions with human health up 20% and environmental up 11% for the
has surprised analysts to the upside for the past 4 quarters an average
are for PKI to generate
$0.41 in income this quarter. Of the 9 analysts who cover
consensus is for the company to grow earnings by 10% in the current
and roughly 13% in FY2013.
In terms of the magnitude of
analyst estimate trends, we are seeing all of the consensus estimates
than they were 90 days ago for the current and next quarters, as well
as for FY2012
reports Q12012 results
on May 10th.
Market Performance &
Over the past three months, PKI’s charts would be the textbook
momentum. Unfortunately, they would also
be the textbook definition of overbought, having risen 59% in that
the surface, it looks like a
scary trade to make given the non-stop bullish action the shares have
given the reasonable earnings multiple and strong fundamental story it
not be such a bad deal. The shares are still about $2 away
from their 52-week highs of almost $59 made back in mid-2011.
The company’s strong 2012 guidance should
also add a bit of comfort to the trade. A
breakout above that level could give the stock another boost.
a technical standpoint, there
is support down at the $23 level which coincides with some tops made
August and September of 2011, as well as the 50- and 200-day moving
which are crossed right around that level.
The 50-day stands at $23.13 and the 200 at $22.70.
has matched the S&P 500’s
performance in the past year but outpaced it by over 30% in the past 3
with its meteoric rise. PKI has
maintained its momentum in the past couple weeks, leading the index by
a beta of .96 you can typically
expect the stock to move in relation to the broad market with the same
volatility. It was interesting to note
that PKI moved right at the same pace as the S&P over the past
year, but it
was much more volatile and seemed disconnected at times.
story remains positive for PKI
-- that is, if the market doesn’t steal the jam out of its donut.
A Levy is the
Momentum Stock Strategist for Zacks.com. He is also the Editor in
charge of the
Whisper Trader Service.