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PerkinElmer (PKI) Q2 Earnings and Revenues Surpass Estimates
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PerkinElmer, Inc. reported second-quarter 2020 adjusted earnings per share (EPS) of $1.57, which beat the Zacks Consensus Estimate of 93 cents per share by 68.8%. Moreover, the bottom line improved 57% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $811.7 million, up 12.3% from the year-ago quarter and 13% organically. Adjusted revenues in the reported quarter came in at $811.9 million, up 12.3% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.3%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $391 million, reflecting a decline of 9.9% from the year-ago quarter. Organically, the segment saw a decline of 10% in the quarter under review. Per management, continued strength in life sciences was more than offset by weak performance in food and applied markets.
Coming to profits at the DAS segment, the company reported second-quarter 2020 adjusted operating income of $57.4 million, down 29.6% from the year-ago quarter.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
Revenues at this segment amounted to $420.7 million, up 45.8% on a year-over-year basis. Organically, the segment improved 48% in the second quarter. Per management, strength in immunodiagnostics and applied genomics business drove the upside. However, modest decline across reproductive health business line partially offset the upside.
Adjusted operating income in the segment totaled $189.6 million, up 137.9% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a mixed second quarter with low double-digit organic revenue growth in the United States. While Europe saw strong double-digit growth, Asia Pacific (APAC) remained flat on a year-over-year basis. China exhibited sequential improvement.
Margin Analysis
Adjusted gross profit in the quarter came in at $463.9 million, up 25.8% year over year. Adjusted gross margin, as a percentage of revenues was 57.1%, up 610 basis points (bps) year over year.
Adjusted operating income was $228.2 million, up 56.3% year over year. Adjusted operating margin, as a percentage of revenues was 28.1%, up 790 bps.
Financial Update
The company exited the second quarter with cash and cash equivalents of $218.5 million, increasing 13.9% from the year-end 2019.
During the reported quarter, net cash provided by operating activities amounted to $138.6 million, compared with net cash utilized in operating activities of $46.9 million in the year-ago period.
Guidance
PerkinElmer has provided guidance for third-quarter 2020.
The company expects adjusted earnings per share in the range of $1.18-$1.53. Revenues are anticipated between $760 million and $860 million.
Conclusion
PerkinElmer exited the second quarter on a strong note, with both earnings and revenues surpassing their respective consensus marks. The company witnessed robust performance by its core Diagnostics unit in the quarter under review. Modest growth in Europe and United States is also encouraging.
Further, expansion in gross margin buoys optimism. Solid show by Tulip and EUROIMMUN paints a bright picture.
However, negative currency movements impacted the company’s top line in the quarter under review. Further, Discover & Analytics segment displayed weak performance in the second quarter. Furthermore, PerkinElmer continues to make acquisitions, which increases integration risks.
Zacks Rank
Currently, PerkinElmer sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for ViewRay’s second-quarter 2020 bottom line is pegged at a loss of 16 cents per share, indicating 50% narrower loss than the year-ago reported quarter figure.
The Zacks Consensus Estimate for Opko Health’s second-quarter 2020 bottom line stands at a loss of 7 cents per share, suggesting an improvement of 30% from the year-ago period. The same for revenues is pegged at $234.6 million, indicating growth of 3.6% from the year-earlier reported figure.
The Zacks Consensus Estimate for ResMed’s fourth-quarter fiscal 2020 revenues is pegged at $710.9 million, suggesting growth of 0.9% from the year-earlier reported figure. The same for adjusted earnings per share stands at 99 cents, indicating an improvement of 4.2% from the year-ago quarter.
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PerkinElmer (PKI) Q2 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported second-quarter 2020 adjusted earnings per share (EPS) of $1.57, which beat the Zacks Consensus Estimate of 93 cents per share by 68.8%. Moreover, the bottom line improved 57% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $811.7 million, up 12.3% from the year-ago quarter and 13% organically. Adjusted revenues in the reported quarter came in at $811.9 million, up 12.3% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.3%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $391 million, reflecting a decline of 9.9% from the year-ago quarter. Organically, the segment saw a decline of 10% in the quarter under review. Per management, continued strength in life sciences was more than offset by weak performance in food and applied markets.
Coming to profits at the DAS segment, the company reported second-quarter 2020 adjusted operating income of $57.4 million, down 29.6% from the year-ago quarter.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
PerkinElmer, Inc. price-consensus-eps-surprise-chart | PerkinElmer, Inc. Quote
Diagnostics segment
Revenues at this segment amounted to $420.7 million, up 45.8% on a year-over-year basis. Organically, the segment improved 48% in the second quarter. Per management, strength in immunodiagnostics and applied genomics business drove the upside. However, modest decline across reproductive health business line partially offset the upside.
Adjusted operating income in the segment totaled $189.6 million, up 137.9% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a mixed second quarter with low double-digit organic revenue growth in the United States. While Europe saw strong double-digit growth, Asia Pacific (APAC) remained flat on a year-over-year basis. China exhibited sequential improvement.
Margin Analysis
Adjusted gross profit in the quarter came in at $463.9 million, up 25.8% year over year. Adjusted gross margin, as a percentage of revenues was 57.1%, up 610 basis points (bps) year over year.
Adjusted operating income was $228.2 million, up 56.3% year over year. Adjusted operating margin, as a percentage of revenues was 28.1%, up 790 bps.
Financial Update
The company exited the second quarter with cash and cash equivalents of $218.5 million, increasing 13.9% from the year-end 2019.
During the reported quarter, net cash provided by operating activities amounted to $138.6 million, compared with net cash utilized in operating activities of $46.9 million in the year-ago period.
Guidance
PerkinElmer has provided guidance for third-quarter 2020.
The company expects adjusted earnings per share in the range of $1.18-$1.53. Revenues are anticipated between $760 million and $860 million.
Conclusion
PerkinElmer exited the second quarter on a strong note, with both earnings and revenues surpassing their respective consensus marks. The company witnessed robust performance by its core Diagnostics unit in the quarter under review. Modest growth in Europe and United States is also encouraging.
Further, expansion in gross margin buoys optimism. Solid show by Tulip and EUROIMMUN paints a bright picture.
However, negative currency movements impacted the company’s top line in the quarter under review. Further, Discover & Analytics segment displayed weak performance in the second quarter. Furthermore, PerkinElmer continues to make acquisitions, which increases integration risks.
Zacks Rank
Currently, PerkinElmer sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks in the broader medical space are ViewRay, Inc. , Opko Health (OPK - Free Report) and ResMed Inc. (RMD - Free Report) , each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ViewRay’s second-quarter 2020 bottom line is pegged at a loss of 16 cents per share, indicating 50% narrower loss than the year-ago reported quarter figure.
The Zacks Consensus Estimate for Opko Health’s second-quarter 2020 bottom line stands at a loss of 7 cents per share, suggesting an improvement of 30% from the year-ago period. The same for revenues is pegged at $234.6 million, indicating growth of 3.6% from the year-earlier reported figure.
The Zacks Consensus Estimate for ResMed’s fourth-quarter fiscal 2020 revenues is pegged at $710.9 million, suggesting growth of 0.9% from the year-earlier reported figure. The same for adjusted earnings per share stands at 99 cents, indicating an improvement of 4.2% from the year-ago quarter.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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