PerkinElmer Tops Zacks Estimate

PerkinElmer Inc. (PKI - Analyst Report) reported third-quarter earnings of 30 cents per share, which was 3 cents ahead of the Zacks Consensus Estimate. The company had earned 34 cents in the year-ago quarter.
 
Revenues for the quarter came in at $437.1 million as against $478.7 million in the previous year period, a decline of 8.7%. On a segment basis, sales in the Human Health division declined approximately 8% to $180.2 million from $196.7 million in the year-ago quarter. Sales in the Environmental Health segment decreased approximately 9% to $256.9 million from $282.1 million in the year-ago quarter. The unfavorable impact of foreign exchange was 2%. However, acquisitions impacted revenues favorably by 1%. 
 
Revenues from the Human Health business accounted for 41% of the company’s total revenues in the quarter. Within Human Health, PerkinElmer serves the diagnostics and the research end markets. The former contributed 24% of the revenues from the segment while the latter accounted for the balance. Within the Environmental Health segment, the company serves the laboratory services, environmental, safety and security, and industrial end markets. They accounted for 22%, 17%, 13% and 7%, respectively, of the revenues from the Environmental Health segment.
 
Research and development expenses for the quarter increased to $26.8 million from $25.7 million in the year-ago quarter. The increase was attributable to the continued investments by the company towards developing innovative new products, applications and solutions the customers. However, selling, general and administrative expenses declined to $116.2 million from $125.7 million in the third quarter of 2008. The decrease was attributable to the cost containment initiatives and lower compensation costs, offset by higher pension expense and lower volumes.
 
The company exited the reported quarter with approximately $426 million of debt (short and long-term debt less cash). PerkinElmer had had approximately $151 million of cash and approximately $210 million of undrawn availability under its revolving line of credit with no mandatory maturities due until 2012 at the end of the third quarter.
 
The company has also raised its earnings guidance for 2009. It expects to earn in the range of $1.23 to $1.26 in the year as against the previous guidance of $1.18 to $1.24 per share.

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