A month has gone by since the last earnings report for PerkinElmer . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PerkinElmer due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PerkinElmer Q2 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported second-quarter 2020 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of 93 cents per share by 68.8%. Moreover, the bottom line improved 57% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $811.7 million, up 12.3% from the year-ago quarter and 13% organically. Adjusted revenues in the reported quarter came in at $811.9 million, up 12.3% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.3%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $391 million, reflecting a decline of 9.9% from the year-ago quarter. Organically, the segment saw a decline of 10% in the quarter under review. Per management, continued strength in life sciences was more than offset by weak performance in food and applied markets.
Coming to profits at the DAS segment, the company reported second-quarter 2020 adjusted operating income of $57.4 million, down 29.6% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $420.7 million, up 45.8% on a year-over-year basis. Organically, the segment improved 48% in the second quarter. Per management, strength in immunodiagnostics and applied genomics business drove the upside. However, modest decline across reproductive health business line partially offset the upside.
Adjusted operating income in the segment totaled $189.6 million, up 137.9% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a mixed second quarter with low double-digit organic revenue growth in the United States. While Europe saw strong double-digit growth, Asia Pacific (APAC) remained flat on a year-over-year basis. China exhibited sequential improvement.
Margin Analysis
Adjusted gross profit in the quarter came in at $463.9 million, up 25.8% year over year. Adjusted gross margin, as a percentage of revenues was 57.1%, up 610 basis points (bps) year over year.
Adjusted operating income was $228.2 million, up 56.3% year over year. Adjusted operating margin, as a percentage of revenues was 28.1%, up 790 bps.
Financial Update
The company exited the second quarter with cash and cash equivalents of $218.5 million, increasing 13.9% from the year-end 2019.
During the reported quarter, net cash provided by operating activities amounted to $138.6 million, compared with net cash utilized in operating activities of $46.9 million in the year-ago period.
Guidance
PerkinElmer has provided guidance for third-quarter 2020.
The company expects adjusted earnings per share in the range of $1.18-$1.53. Revenues are anticipated between $760 million and $860 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 26.06% due to these changes.
VGM Scores
At this time, PerkinElmer has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise PerkinElmer has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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PerkinElmer (PKI) Down 0.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for PerkinElmer . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PerkinElmer due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PerkinElmer Q2 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported second-quarter 2020 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of 93 cents per share by 68.8%. Moreover, the bottom line improved 57% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $811.7 million, up 12.3% from the year-ago quarter and 13% organically. Adjusted revenues in the reported quarter came in at $811.9 million, up 12.3% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.3%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $391 million, reflecting a decline of 9.9% from the year-ago quarter. Organically, the segment saw a decline of 10% in the quarter under review. Per management, continued strength in life sciences was more than offset by weak performance in food and applied markets.
Coming to profits at the DAS segment, the company reported second-quarter 2020 adjusted operating income of $57.4 million, down 29.6% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $420.7 million, up 45.8% on a year-over-year basis. Organically, the segment improved 48% in the second quarter. Per management, strength in immunodiagnostics and applied genomics business drove the upside. However, modest decline across reproductive health business line partially offset the upside.
Adjusted operating income in the segment totaled $189.6 million, up 137.9% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a mixed second quarter with low double-digit organic revenue growth in the United States. While Europe saw strong double-digit growth, Asia Pacific (APAC) remained flat on a year-over-year basis. China exhibited sequential improvement.
Margin Analysis
Adjusted gross profit in the quarter came in at $463.9 million, up 25.8% year over year. Adjusted gross margin, as a percentage of revenues was 57.1%, up 610 basis points (bps) year over year.
Adjusted operating income was $228.2 million, up 56.3% year over year. Adjusted operating margin, as a percentage of revenues was 28.1%, up 790 bps.
Financial Update
The company exited the second quarter with cash and cash equivalents of $218.5 million, increasing 13.9% from the year-end 2019.
During the reported quarter, net cash provided by operating activities amounted to $138.6 million, compared with net cash utilized in operating activities of $46.9 million in the year-ago period.
Guidance
PerkinElmer has provided guidance for third-quarter 2020.
The company expects adjusted earnings per share in the range of $1.18-$1.53. Revenues are anticipated between $760 million and $860 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 26.06% due to these changes.
VGM Scores
At this time, PerkinElmer has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise PerkinElmer has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.