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Shares of global technology company PerkinElmer, Inc. (PKI - Analyst Report) reached a new 52-week high of $41.14 in mid-day trading yesterday. Shares of the company closed at $41.05 on the same day, representing a strong year-to-date return of 30.9%.

PKI has a market cap of $4.6 billion. Average volume of shares traded over the last three months was approximately 681.1K.

Investors seem to be impressed with PerkinElmer’s organic growth opportunities and cost reduction measures. The company is in the process of transforming its business model to higher-growth offerings through a series of acquisitions and divestitures.

PKI has increased its productivity and improved product mix in favor of higher value added products, leading to higher operating margins. PerkinElmer is therefore hopeful to achieve its goal of 18% adjusted operating margin for 2014.

In the third quarter of 2013, PerkinElmer posted adjusted earnings per share of 49 cents, exceeding the Zacks Consensus Estimate by a penny as well as the year ago level of 45 cents by 8.9%. Reported figurers are impressive as they depict a growth of 44% in EPS to 36 cents from 25 cents a year ago.

Revenues in the quarter rose 2.9% to $524.3 million and were in line with the Zacks Consensus Estimate. Organic revenues rose 2% in the quarter. Adjusted revenues went up only 2% to $525.1 million while organic revenues grew 2% as well.

PKI continues to expect organic revenue growth in the low-single digit range in the year compared with 2012. PerkinElmer narrowed its reported earnings per share guidance to $1.42–$1.45 from the earlier range of $1.40 to $1.47 and adjusted earnings per share to $2.04–$2.07 from $2.03 to $2.10. The current Zacks Consensus Estimate for 2013 is $2.05.

Currently, PerkinElmer carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the scientific instruments industry include Newport Corp. (NEWP - Snapshot Report) with a Zacks Rank #1 (Strong Buy). Other stocks from the medical products industry inlcude NuVasive, Inc. (NUVA - Snapshot Report) and Advaxis, Inc. (ADXS), both of which have a Zacks Rank #2 (Buy).

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