It has been about a month since the last earnings report for PerkinElmer . Shares have lost about 4.2% in that time frame, outperforming 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 Q4 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported fourth-quarter 2021 adjusted earnings per share of $2.56, which beat the Zacks Consensus Estimate of $2.15 per share by 19.1%. The bottom line, however, declined 35.4% from the year-ago quarter.
In full-year 2021 the company reported adjusted earnings per share of $11.36, up 36.9% from the previous year. The figure outpaced the consensus mark by 3.6%.
GAAP EPS in the quarter was $1.41 compared with the year-ago quarter’s figure of $3.38.
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $1.36 billion, up 1% from the year-ago quarter but down 9% organically. The top line surpassed the Zacks Consensus Estimate by 9.5%.
In full-year 2021, the company reported revenues of $5.07 billion, up 33.9% from the previous year. The figure beat the consensus mark by 3%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $655 million, reflecting a rise of 30% from the year-ago quarter. Organically, the segment witnessed an increase of 9%.
Coming to profits at the DAS segment, the company reported fourth-quarter 2021 adjusted operating income of $144 million, up 56.5% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $709 million, down 17% on a year-over-year basis. Organically, the segment decreased 20% in the fourth quarter.
Adjusted operating income in the segment totaled $335 million, down 33.3% from the year-ago quarter.
Margin Analysis
Adjusted gross profit in the quarter amounted to $811.6 million, down 4.9% year over year. Adjusted gross margin, as a percentage of revenues, was 59.5%, down 340 basis points (bps) year over year.
Selling, general and administrative expenses were $355.2 million, up 35% on a year-over-year basis. Research and development expenses amounted to $80.3 million, up 41.4% from the year-ago quarter.
Adjusted operating income was $458.7 million, which declined 19.7% from the year-ago quarter. Adjusted operating margin, as a percentage of revenues, was 33.6%, down 860 bps.
Financial Update
The company exited the fourth quarter with cash and cash equivalents of $618.3 million compared with $487.4 million a year ago.
Cumulative net cash provided by operating activities in the fourth quarter totaled $1.41 billion compared with $892.2 million in the year-ago quarter.
2022 Guidance
PerkinElmer has provided guidance for first-quarter 2022 and raised full-year 2022 outlook.
For first-quarter 2022, the company projects adjusted earnings per share in the range of $2.05-$2.10. The Zacks Consensus Estimate is pegged at $1.46 per share. For the same period, revenues are anticipated to be in the band of $1.17-$1.19 billion. The Zacks Consensus Estimate for the same stands at $1.07 billion.
For 2022, the company expects adjusted earnings per share to be in the range of $6.80 to $7.00. The Zacks Consensus Estimate is pegged at $6.47 per share.
Revenues are anticipated between $4.42 billion and $4.50 billion. The consensus mark stands at $4.35 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 42.35% due to these changes.
VGM Scores
At this time, PerkinElmer has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 this revision looks promising. Notably, PerkinElmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is PerkinElmer (PKI) Down 4.2% Since Last Earnings Report?
It has been about a month since the last earnings report for PerkinElmer . Shares have lost about 4.2% in that time frame, outperforming 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 Q4 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported fourth-quarter 2021 adjusted earnings per share of $2.56, which beat the Zacks Consensus Estimate of $2.15 per share by 19.1%. The bottom line, however, declined 35.4% from the year-ago quarter.
In full-year 2021 the company reported adjusted earnings per share of $11.36, up 36.9% from the previous year. The figure outpaced the consensus mark by 3.6%.
GAAP EPS in the quarter was $1.41 compared with the year-ago quarter’s figure of $3.38.
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $1.36 billion, up 1% from the year-ago quarter but down 9% organically. The top line surpassed the Zacks Consensus Estimate by 9.5%.
In full-year 2021, the company reported revenues of $5.07 billion, up 33.9% from the previous year. The figure beat the consensus mark by 3%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $655 million, reflecting a rise of 30% from the year-ago quarter. Organically, the segment witnessed an increase of 9%.
Coming to profits at the DAS segment, the company reported fourth-quarter 2021 adjusted operating income of $144 million, up 56.5% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $709 million, down 17% on a year-over-year basis. Organically, the segment decreased 20% in the fourth quarter.
Adjusted operating income in the segment totaled $335 million, down 33.3% from the year-ago quarter.
Margin Analysis
Adjusted gross profit in the quarter amounted to $811.6 million, down 4.9% year over year. Adjusted gross margin, as a percentage of revenues, was 59.5%, down 340 basis points (bps) year over year.
Selling, general and administrative expenses were $355.2 million, up 35% on a year-over-year basis. Research and development expenses amounted to $80.3 million, up 41.4% from the year-ago quarter.
Adjusted operating income was $458.7 million, which declined 19.7% from the year-ago quarter. Adjusted operating margin, as a percentage of revenues, was 33.6%, down 860 bps.
Financial Update
The company exited the fourth quarter with cash and cash equivalents of $618.3 million compared with $487.4 million a year ago.
Cumulative net cash provided by operating activities in the fourth quarter totaled $1.41 billion compared with $892.2 million in the year-ago quarter.
2022 Guidance
PerkinElmer has provided guidance for first-quarter 2022 and raised full-year 2022 outlook.
For first-quarter 2022, the company projects adjusted earnings per share in the range of $2.05-$2.10. The Zacks Consensus Estimate is pegged at $1.46 per share. For the same period, revenues are anticipated to be in the band of $1.17-$1.19 billion. The Zacks Consensus Estimate for the same stands at $1.07 billion.
For 2022, the company expects adjusted earnings per share to be in the range of $6.80 to $7.00. The Zacks Consensus Estimate is pegged at $6.47 per share.
Revenues are anticipated between $4.42 billion and $4.50 billion. The consensus mark stands at $4.35 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 42.35% due to these changes.
VGM Scores
At this time, PerkinElmer has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 this revision looks promising. Notably, PerkinElmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.