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PerkinElmer (PKI) to Post Q1 Earnings: What's in the Cards?

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PerkinElmer, Inc. (PKI - Free Report) is slated to release first-quarter 2021 results on May 4, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 9.7%. Further, its earnings beat estimates in each of the trailing four quarters, the average surprise being 42.1%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.19 billion, suggesting growth of 82.9% from the year-ago reported figure. The consensus mark for earnings stands at $3.03 per share, indicating a significant improvement from the prior-year quarter.

Diagnostics Revenues: A Key Catalyst

PerkinElmer's Diagnostics segment is likely to have favored the to-be-reported quarter’s performance. Strength in immunodiagnostics and applied genomics business might get reflected in the segment’s first-quarter revenues.

Further, the continued rise in infectious and autoimmune diseases, especially in emerging markets, may have benefited the segment.

In March, the company introduced two Research Use Only (RUO) solutions — PKamp VariantDetect SARS-CoV-2 RT-PCR Assay and Next Generation Sequencing-based NEXTFLEX Variant-Seq SARS-CoV-2 Kit — to detect genomic mutations reported in connection to SARS-CoV-2 variants. Notably, laboratories can utilize these assays through nucleic acid extracted from samples that tested positive earlier.

PerkinElmer, Inc. Price and EPS Surprise

PerkinElmer, Inc. Price and EPS Surprise

PerkinElmer, Inc. price-eps-surprise | PerkinElmer, Inc. Quote

In the same month, Horizon Discovery (a PerkinElmer company) expanded its gene editing and modulation portfolio to include a new family of CRISPR modulation (CRISPRmod) reagents for CRISPR interference (CRISPRi).

In January, PerkinElmer received Emergency Use Authorization (EUA) from the FDA for its New Coronavirus Nucleic Acid Detection Kit. The New Coronavirus Nucleic Acid Detection Kit is a real-time RT-PCR test intended to test individuals without symptoms or other reasons to detect COVID-19 infection. With this approval, clinical laboratories that are certified under Clinical Laboratory Improvement Amendments (CLIA) can now start utilizing this kit to test both symptomatic and asymptomatic individuals.

In November 2020, the company announced that its SARS-CoV-2 Real-time RT-PCR (reverse transcription-polymerase chain reaction) Assay received CE-IVD marking for the utilization of saliva as specimen type and the choice to combine up to five specimens from suspected COVID-19 infected or asymptomatic individuals.

These developments are likely to have positively impacted the company’s Diagnostics segment in the first quarter. This, in turn, might get reflected in the company’s to-be-reported quarter’s results.

Other Factors to Note

PerkinElmer is likely to have witnessed solid international growth in the to-be-reported quarter. Improved momentum in Europe and consistent growth trend in the United States might have contributed to the first-quarter performance.

Additionally, the company’s Discovery product portfolio may have witnessed strong demand courtesy of sustained robust performance by life sciences.

Productivity initiatives, volume leverage and strict cost control measures are likely to have contributed to the company’s first-quarter gross and operating margins. New product introductions might have improved product mix and thereby gross margin.

However, PerkinElmer’s exposure to the international markets increases the risk of foreign exchange volatility. The fluctuations in currency exchange rates might have weighed on the company’s international sales in the to-be-reported quarter.

Here’s What the Quantitative Model Suggests

Our proven model conclusively predicts an earnings beat for PerkinElmer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: PerkinElmer has an Earnings ESP of +1.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PerkinElmer sports a Zacks Rank #3.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Thermo Fisher Scientific Inc. (TMO - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

AmerisourceBergen Corporation (ABC - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank of 3.

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 3.

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