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PerkinElmer (PKI) Tops Q1 Earnings Estimates, FY17 View Up
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Waltham, MA-based PerkinElmer Inc , a worldwide provider of products, services and solutions to the diagnostics, research, and laboratory service markets, reported first-quarter 2017 adjusted earnings of 55 cents per share, marginally beating the Zacks Consensus Estimate by a penny.
Notably, adjusted earnings surpassed management’s guided range of 52 cents to 54 cents.
The company reported adjusted revenues of $514.3 million, which comfortably beat the Zacks Consensus Estimate of $506 million. Interestingly, revenues were above management’s guided range of $500 million to $510 million.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
PerkinElmer added 15.6% over the last three months, higher than the Zacks classified Instruments – Scientific sub-industry’s gain of almost 10.8%. In fact, the current level is also higher than the S&P 500’s return of 5.2% over the same time frame. The stock has a Zacks Rank #3 (Hold).
Segment Details
Discovery & Analytical Solutions (DAS): Revenues totaled $361.8 million in the first quarter, compared with $356.4 million in the year-ago quarter. This marked a 2% rise organically.
Meanwhile, operating profit margin (as a percentage of revenues) in the first quarter was 14.1%, a little below the prior-year quarter’s level of 15.1%.
Diagnostics Segment: In this segment, revenues were $152.4 million in the first quarter, as compared with $151.7 million in the year-ago quarter. This implies an 8% increase organically.
Meanwhile, operating profit margin (as a percentage of revenues) for the segment in the first quarter was 29.8%, up from 28.2% in the year-ago quarter.
Q1 Highlights
At the Diagnostics business, PerkinElmer launched two products to facilitate targeted sequencing and detection of genetic variance to support oncology and genomics research.
In the infectious disease testing space, PerkinElmer closed the acquisition of Tulip Diagnostics in India at the beginning of the year. Per management, the integration is well on track (read more: PerkinElmer to Acquire India-Based Tulip Diagnostics).
In the first quarter, PerkinElmer expanded its pipeline with the introduction of products like the NexION 2000 ICP-MS and Vectra Polaris. The company experienced strong demand for several products like the QSight Triple Quad Mass Spec and the Operetta CLS which were introduced in the back half of 2016.
The company exclusively leveraged on its DAS service business in the quarter. Notably, the segment is approaching the $600 million mark in full-year 2017, thanks to a strong foothold in the biotech space.
Margin Details
Adjusted gross margin, as a percentage of revenues, was 48.4% in the quarter, down 50 basis points (bps) year over year. The downside was a result of an impact of acquisitions and divestitures completed in full-year 2016.
Adjusted selling, general & administrative (SG&A) expenses, as a percentage of revenues, were 25.6%, down 100 bps from the year-ago quarter.
Research and Development (R&D) expenses, as a percentage of revenues, rose 50 bps in the quarter to $33.3 million.
As a result, the company’s overall adjusted operating margin from continuing operations came in at 16.3% of net revenues and remained flat on a year-over-year basis.
Financial Details
For the first quarter, PerkinElmer’s operating cash flow from continuing operations was $41.2 million, as compared with $26.3 million in the prior-year quarter. The company finished the quarter with approximately $1.1 billion in debt.
Guidance Raised
The company raised its adjusted earnings and reported revenue guidance for full-year 2017.
PerkinElmer expects adjusted earnings per share in the band of $2.80 and $2.90, up from the previously provided range of $2.75 to $2.85.
Revenues are expected in the band of $2.2 billion to $2.22 billion, up from the previous $2.19 billion to $2.2 billion. This represents organic revenue growth of 4% and includes $25 million to $30 million in foreign exchange (FX) headwinds.
For the second quarter of 2017, PerkinElmer projects revenues in the range of $550 million to $555 million, which represents organic revenue growth of approximately 3% to 4%. Notably, this includes a 2% forex headwind.
Second-quarter adjusted earnings per share are forecasted in the range of 66 cents to 68 cents.
Our Take
PerkinElmer delivered a solid first quarter, beating the Zacks Consensus Estimate on both the counts. The quarter witnessed solid organic revenue growth across all the business segments. Furthermore, a positive guidance instills our confidence on the stock. The company continues to offer a global diagnostics portfolio focused on reproductive health, infectious disease screening and genomics offerings for oncology and other molecular tests.
On the flipside, despite having a solid portfolio, unfavorable foreign exchange is a primary concern for PerkinElmer.
Key Picks
Better-ranked stocks in the broader medical sector include Neovasc Inc. , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Notably, Neovasc and Hologic sport a Zacks Rank #1 (Strong Buy), while Sunshine Heart has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 33.8%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
Neovasc had a solid return of 8% over the last three months. The company projects sales growth of 102.88% for the current year.
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PerkinElmer (PKI) Tops Q1 Earnings Estimates, FY17 View Up
Waltham, MA-based PerkinElmer Inc , a worldwide provider of products, services and solutions to the diagnostics, research, and laboratory service markets, reported first-quarter 2017 adjusted earnings of 55 cents per share, marginally beating the Zacks Consensus Estimate by a penny.
Notably, adjusted earnings surpassed management’s guided range of 52 cents to 54 cents.
The company reported adjusted revenues of $514.3 million, which comfortably beat the Zacks Consensus Estimate of $506 million. Interestingly, revenues were above management’s guided range of $500 million to $510 million.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
PerkinElmer, Inc. Price, Consensus and EPS Surprise | PerkinElmer, Inc. Quote
PerkinElmer added 15.6% over the last three months, higher than the Zacks classified Instruments – Scientific sub-industry’s gain of almost 10.8%. In fact, the current level is also higher than the S&P 500’s return of 5.2% over the same time frame. The stock has a Zacks Rank #3 (Hold).
Segment Details
Discovery & Analytical Solutions (DAS): Revenues totaled $361.8 million in the first quarter, compared with $356.4 million in the year-ago quarter. This marked a 2% rise organically.
Meanwhile, operating profit margin (as a percentage of revenues) in the first quarter was 14.1%, a little below the prior-year quarter’s level of 15.1%.
Diagnostics Segment: In this segment, revenues were $152.4 million in the first quarter, as compared with $151.7 million in the year-ago quarter. This implies an 8% increase organically.
Meanwhile, operating profit margin (as a percentage of revenues) for the segment in the first quarter was 29.8%, up from 28.2% in the year-ago quarter.
Q1 Highlights
At the Diagnostics business, PerkinElmer launched two products to facilitate targeted sequencing and detection of genetic variance to support oncology and genomics research.
In the infectious disease testing space, PerkinElmer closed the acquisition of Tulip Diagnostics in India at the beginning of the year. Per management, the integration is well on track (read more: PerkinElmer to Acquire India-Based Tulip Diagnostics).
In the first quarter, PerkinElmer expanded its pipeline with the introduction of products like the NexION 2000 ICP-MS and Vectra Polaris. The company experienced strong demand for several products like the QSight Triple Quad Mass Spec and the Operetta CLS which were introduced in the back half of 2016.
The company exclusively leveraged on its DAS service business in the quarter. Notably, the segment is approaching the $600 million mark in full-year 2017, thanks to a strong foothold in the biotech space.
Margin Details
Adjusted gross margin, as a percentage of revenues, was 48.4% in the quarter, down 50 basis points (bps) year over year. The downside was a result of an impact of acquisitions and divestitures completed in full-year 2016.
Adjusted selling, general & administrative (SG&A) expenses, as a percentage of revenues, were 25.6%, down 100 bps from the year-ago quarter.
Research and Development (R&D) expenses, as a percentage of revenues, rose 50 bps in the quarter to $33.3 million.
As a result, the company’s overall adjusted operating margin from continuing operations came in at 16.3% of net revenues and remained flat on a year-over-year basis.
Financial Details
For the first quarter, PerkinElmer’s operating cash flow from continuing operations was $41.2 million, as compared with $26.3 million in the prior-year quarter. The company finished the quarter with approximately $1.1 billion in debt.
Guidance Raised
The company raised its adjusted earnings and reported revenue guidance for full-year 2017.
PerkinElmer expects adjusted earnings per share in the band of $2.80 and $2.90, up from the previously provided range of $2.75 to $2.85.
Revenues are expected in the band of $2.2 billion to $2.22 billion, up from the previous $2.19 billion to $2.2 billion. This represents organic revenue growth of 4% and includes $25 million to $30 million in foreign exchange (FX) headwinds.
For the second quarter of 2017, PerkinElmer projects revenues in the range of $550 million to $555 million, which represents organic revenue growth of approximately 3% to 4%. Notably, this includes a 2% forex headwind.
Second-quarter adjusted earnings per share are forecasted in the range of 66 cents to 68 cents.
Our Take
PerkinElmer delivered a solid first quarter, beating the Zacks Consensus Estimate on both the counts. The quarter witnessed solid organic revenue growth across all the business segments. Furthermore, a positive guidance instills our confidence on the stock. The company continues to offer a global diagnostics portfolio focused on reproductive health, infectious disease screening and genomics offerings for oncology and other molecular tests.
On the flipside, despite having a solid portfolio, unfavorable foreign exchange is a primary concern for PerkinElmer.
Key Picks
Better-ranked stocks in the broader medical sector include Neovasc Inc. , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Notably, Neovasc and Hologic sport a Zacks Rank #1 (Strong Buy), while Sunshine Heart has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 33.8%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
Neovasc had a solid return of 8% over the last three months. The company projects sales growth of 102.88% for the current year.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>