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PerkinElmer (PKI) Q3 Earnings and Revenues Surpass Estimates
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PerkinElmer, Inc. reported third-quarter 2020 adjusted earnings per share (EPS) of $2.09, which beat the Zacks Consensus Estimate of $1.42 per share by 47.2%. Moreover, the bottom line surged 97.2% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $964 million, up 36.4% from the year-ago quarter and 34% organically. Adjusted revenues in the reported quarter came in at $964.2 million, up 36.4% year over year. The top line also surpassed the Zacks Consensus Estimate by 16.9%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $423.6 million, reflecting a decline of 0.8% from the year-ago quarter. Organically, the segment saw a decrease of 3% 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 third-quarter 2020 adjusted operating income of $62.5 million, down 27.5% from the year-ago quarter.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
Revenues at this segment amounted to $540.4 million, up 93% on a year-over-year basis. Organically, the segment improved 92% in the third 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 $260.3 million, up 226.6% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a solid third quarter with both Europe and United States witnessing strong double-digit growth. Asia Pacific (APAC) saw mid-single-digit growth in the quarter under review.
Margin Analysis
Adjusted gross profit in the quarter came in at $544.6 million, up 49.1% year over year. Adjusted gross margin, as a percentage of revenues was 56.5%, up 480 basis points (bps) year over year.
Adjusted operating income was $304.3 million, up 99.5% year over year. Adjusted operating margin, as a percentage of revenues was 31.6%, up 1000 bps.
Financial Update
The company exited the third quarter with cash and cash equivalents of $258.3 million, compared with $218.5 million in the prior quarter.
During the reported quarter, net cash provided by operating activities amounted to $211.4 million, compared with $106.7 million in the year-ago period.
Guidance
PerkinElmer has provided guidance for fourth-quarter 2020.
The company expects adjusted earnings per share in the range of $2.60-$3.00. Revenues are anticipated between $$1.12 billion and $1.23 billion.
Conclusion
PerkinElmer exited the third quarter on a strong note, with both earnings and revenues surpassing their respective consensus mark. The company witnessed robust performance by its core Diagnostics unit in the quarter under review. Robust growth in Europe and United States is also encouraging.
Further, expansion in both gross and operating margins buoys optimism. Solid show by Tulip and EUROIMMUN paints a bright picture.
However, Discover & Analytics segment displayed weak performance in the third quarter. Furthermore, PerkinElmer continues to make acquisitions, which increases integration risks.
Zacks Rank
Currently, PerkinElmer sports a Zacks Rank #1 (Strong Buy).
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
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PerkinElmer (PKI) Q3 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported third-quarter 2020 adjusted earnings per share (EPS) of $2.09, which beat the Zacks Consensus Estimate of $1.42 per share by 47.2%. Moreover, the bottom line surged 97.2% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $964 million, up 36.4% from the year-ago quarter and 34% organically. Adjusted revenues in the reported quarter came in at $964.2 million, up 36.4% year over year. The top line also surpassed the Zacks Consensus Estimate by 16.9%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues were $423.6 million, reflecting a decline of 0.8% from the year-ago quarter. Organically, the segment saw a decrease of 3% 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 third-quarter 2020 adjusted operating income of $62.5 million, down 27.5% 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 $540.4 million, up 93% on a year-over-year basis. Organically, the segment improved 92% in the third 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 $260.3 million, up 226.6% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a solid third quarter with both Europe and United States witnessing strong double-digit growth. Asia Pacific (APAC) saw mid-single-digit growth in the quarter under review.
Margin Analysis
Adjusted gross profit in the quarter came in at $544.6 million, up 49.1% year over year. Adjusted gross margin, as a percentage of revenues was 56.5%, up 480 basis points (bps) year over year.
Adjusted operating income was $304.3 million, up 99.5% year over year. Adjusted operating margin, as a percentage of revenues was 31.6%, up 1000 bps.
Financial Update
The company exited the third quarter with cash and cash equivalents of $258.3 million, compared with $218.5 million in the prior quarter.
During the reported quarter, net cash provided by operating activities amounted to $211.4 million, compared with $106.7 million in the year-ago period.
Guidance
PerkinElmer has provided guidance for fourth-quarter 2020.
The company expects adjusted earnings per share in the range of $2.60-$3.00. Revenues are anticipated between $$1.12 billion and $1.23 billion.
Conclusion
PerkinElmer exited the third quarter on a strong note, with both earnings and revenues surpassing their respective consensus mark. The company witnessed robust performance by its core Diagnostics unit in the quarter under review. Robust growth in Europe and United States is also encouraging.
Further, expansion in both gross and operating margins buoys optimism. Solid show by Tulip and EUROIMMUN paints a bright picture.
However, Discover & Analytics segment displayed weak performance in the third quarter. Furthermore, PerkinElmer continues to make acquisitions, which increases integration risks.
Zacks Rank
Currently, PerkinElmer sports a Zacks Rank #1 (Strong Buy).
Earnings of Other MedTech Majors at a Glance
Some other top-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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