PerkinElmer, Inc. reported second-quarter 2022 adjusted earnings per share (EPS) of $2.32, which beat the Zacks Consensus Estimate of $2.03 per share by 14.3%. The bottom line, however, declined 18% from the year-ago quarter.
GAAP EPS in the quarter was $1.42 compared with the year-ago quarter's figure of $2.19.
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $1.23 billion, flat year over year but down 5% organically. However, revenues were up 8% organically after excluding sales of revenue growth from COVID products. The top line surpassed the Zacks Consensus Estimate by 2.5%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $661 million, reflecting a rise of 29% from the year-ago quarter. Organically, the segment witnessed an increase of 13%.
Coming to profits at the DAS segment, the company reported second-quarter 2022 adjusted operating income of $178 million, up 76.2% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $569 million, down 20% on a year-over-year basis. Organically, segment revenues decreased 19% in the second quarter.
Adjusted operating income in the segment totaled $245 million, down 25.3% from the year-ago quarter.
Margin Analysis
Adjusted gross profit in the quarter amounted to $724.1 million, up 1.8% year over year. Adjusted gross margin, as a percentage of revenues, was 58.9%, up 110 basis points (bps) year over year.
Selling, general and administrative expenses were $330 million, up 17.1% on a year-over-year basis. Research and development expenses amounted to $73.3 million, up 11.4% from the year-ago quarter.
Adjusted operating income was $401.9 million, which declined 2.3% from the year-ago quarter. Adjusted operating margin, as a percentage of revenues, was 32.7%, down 80 bps.
Financial Update
The company exited the second quarter with cash and cash equivalents of $360.8 million compared with $618.3 million a year ago.
Net cash provided by operating activities in the second quarter totaled $97.5 million compared with $287.9 million in the year-ago quarter.
2022 Guidance
PerkinElmer provided guidance for third-quarter 2022 and raised the full-year 2022 outlook.
For third-quarter 2022, the company projects adjusted EPS in the range of $1.40 to $1.45. The Zacks Consensus Estimate is pegged at $1.33 per share. For the same period, revenues are anticipated to be $1.02-$1.03 billion. The Zacks Consensus Estimate for the same stands at $1.02 billion.
For 2022, the company expects adjusted EPS in the range of $7.80 to $7.90, up from the previous range of $7.15 to $7.45. The Zacks Consensus Estimate is pegged at $7.30 per share.
Revenues are anticipated between $4.6 billion and $4.64 billion, compared to previous guidance range of $4.56 billion to $4.63 billion. The consensus mark stands at $4.59 billion.
Conclusion
PerkinElmer exited the second quarter on a strong note, wherein both earnings and revenues beat the respective consensus mark. The company witnessed a solid performance at Discover & Analytics Solutions segment in the quarter under review.
Per management, the company is well-poised to execute both its short and long-term goals on the back of perseverance and team effort.
However, contraction in operating margin is a woe. Weakness in the Diagnostics segment is disappointing. Apart from this, PerkinElmer continues to make acquisitions, which increases integration risks.
Zacks Rank and Stocks to Consider
Currently, PerkinElmer carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the pharma/biotech sector include Lantheus (LNTH - Free Report) , ShockWave Medical (SWAV - Free Report) and Alkermes (ALKS - Free Report) . While Lantheus and ShockWave Medical sport a Zacks Rank #1 (Strong Buy), Alkermes carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Lantheus have improved from earnings of $3.04 to $3.08 for 2022 and $3.33 to $3.62 for 2023 in the past 30 days. LNTH stock has surged 156.6% so far this year.
Lantheus delivered an earnings surprise of 77.82%, on average, in the last four quarters.
ShockWave Medical’s earnings per share estimates have improved from $1.84 to $2.02 for 2022 and from $2.82 to $2.95 for 2023 in the past 30 days. SWAV has declined 19.1% so far this year.
ShockWave Medical delivered an earnings surprise of 189.99%, on average, in the last four quarters.
Alkermes’ earnings per share estimates have improved from breakeven to 4 cents for 2022 and from 56 cents to 59 cents for 2023 in the past 30 days. ALKS has gained 19.6% so far this year.
Alkermes delivered an earnings surprise of 350.48%, on average, in the last four quarters.
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PerkinElmer, Inc. reported second-quarter 2022 adjusted earnings per share (EPS) of $2.32, which beat the Zacks Consensus Estimate of $2.03 per share by 14.3%. The bottom line, however, declined 18% from the year-ago quarter.
GAAP EPS in the quarter was $1.42 compared with the year-ago quarter's figure of $2.19.
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $1.23 billion, flat year over year but down 5% organically. However, revenues were up 8% organically after excluding sales of revenue growth from COVID products. The top line surpassed the Zacks Consensus Estimate by 2.5%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $661 million, reflecting a rise of 29% from the year-ago quarter. Organically, the segment witnessed an increase of 13%.
Coming to profits at the DAS segment, the company reported second-quarter 2022 adjusted operating income of $178 million, up 76.2% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $569 million, down 20% on a year-over-year basis. Organically, segment revenues decreased 19% in the second quarter.
Adjusted operating income in the segment totaled $245 million, down 25.3% from the year-ago quarter.
Margin Analysis
Adjusted gross profit in the quarter amounted to $724.1 million, up 1.8% year over year. Adjusted gross margin, as a percentage of revenues, was 58.9%, up 110 basis points (bps) year over year.
Selling, general and administrative expenses were $330 million, up 17.1% on a year-over-year basis. Research and development expenses amounted to $73.3 million, up 11.4% from the year-ago quarter.
Adjusted operating income was $401.9 million, which declined 2.3% from the year-ago quarter. Adjusted operating margin, as a percentage of revenues, was 32.7%, down 80 bps.
Financial Update
The company exited the second quarter with cash and cash equivalents of $360.8 million compared with $618.3 million a year ago.
Net cash provided by operating activities in the second quarter totaled $97.5 million compared with $287.9 million in the year-ago quarter.
2022 Guidance
PerkinElmer provided guidance for third-quarter 2022 and raised the full-year 2022 outlook.
For third-quarter 2022, the company projects adjusted EPS in the range of $1.40 to $1.45. The Zacks Consensus Estimate is pegged at $1.33 per share. For the same period, revenues are anticipated to be $1.02-$1.03 billion. The Zacks Consensus Estimate for the same stands at $1.02 billion.
For 2022, the company expects adjusted EPS in the range of $7.80 to $7.90, up from the previous range of $7.15 to $7.45. The Zacks Consensus Estimate is pegged at $7.30 per share.
Revenues are anticipated between $4.6 billion and $4.64 billion, compared to previous guidance range of $4.56 billion to $4.63 billion. The consensus mark stands at $4.59 billion.
Conclusion
PerkinElmer exited the second quarter on a strong note, wherein both earnings and revenues beat the respective consensus mark. The company witnessed a solid performance at Discover & Analytics Solutions segment in the quarter under review.
Per management, the company is well-poised to execute both its short and long-term goals on the back of perseverance and team effort.
However, contraction in operating margin is a woe. Weakness in the Diagnostics segment is disappointing. Apart from this, PerkinElmer continues to make acquisitions, which increases integration risks.
Zacks Rank and Stocks to Consider
Currently, PerkinElmer carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the pharma/biotech sector include Lantheus (LNTH - Free Report) , ShockWave Medical (SWAV - Free Report) and Alkermes (ALKS - Free Report) . While Lantheus and ShockWave Medical sport a Zacks Rank #1 (Strong Buy), Alkermes carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Lantheus have improved from earnings of $3.04 to $3.08 for 2022 and $3.33 to $3.62 for 2023 in the past 30 days. LNTH stock has surged 156.6% so far this year.
Lantheus delivered an earnings surprise of 77.82%, on average, in the last four quarters.
ShockWave Medical’s earnings per share estimates have improved from $1.84 to $2.02 for 2022 and from $2.82 to $2.95 for 2023 in the past 30 days. SWAV has declined 19.1% so far this year.
ShockWave Medical delivered an earnings surprise of 189.99%, on average, in the last four quarters.
Alkermes’ earnings per share estimates have improved from breakeven to 4 cents for 2022 and from 56 cents to 59 cents for 2023 in the past 30 days. ALKS has gained 19.6% so far this year.
Alkermes delivered an earnings surprise of 350.48%, on average, in the last four quarters.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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