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PerkinElmer (PKI) to Post Q4 Earnings: What's in the Cards?

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PerkinElmer, Inc. is slated to release fourth-quarter 2021 results on Feb 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 35.9%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 21.5%.

Q4 Estimates

Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.30 billion, suggesting a decline of 3.9% from the year-ago reported figure. The consensus mark for earnings stands at $2.19 per share, indicating a decrease of 44.7% from the prior-year quarter.

Diagnostics Revenues: A Key Catalyst

In the third quarter, with respect to business, Diagnostics, which represents 56% of total sales, improved 13% organically, with 25% organic growth in non-COVID products. The improvement was driven by strength in the company’s Immunodiagnostics business, courtesy of COVID and non-COVID sales, with EUROIMMUN's non-COVID business continuing to rebound strongly. This trend is likely to have continued in the fourth quarter.

In December 2021, the company launched the research use only NEXTFLEX Variant-Seq SARS-CoV-2 Kit v2 to accelerate the detection of SARS-CoV-2 variants. This complete next-generation sequencing (NGS) solution will likely enable laboratories to boost sequencing throughput and make reliable variant identifications.

PerkinElmer, Inc. Price and EPS Surprise

PerkinElmer, Inc. Price and EPS Surprise

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

In October, the company collaborated with Honeycomb Biotechnologies, Inc. to commercially introduce the first of its kind HIVE scRNAseq Solution for single-cell isolation and analysis. This unique product advances single-cell profiling, enabling scientists to capture, store and study fragile cell types.

In the same month, PerkinElmer announced that it has received Emergency Use Authorization (EUA) from the FDA for the PKamp Respiratory SARS-CoV-2-RT-PCR Panel 1 assay. Following this announcement, qualified laboratories can immediately use this single test for the simultaneous qualitative identification and differentiation of SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus (RSV) — separated from nasopharyngeal swabs, anterior nasal swabs and mid-turbinate swabs.

Further in October, EUROIMMUN — a PerkinElmer company — announced that it has received the FDA’s EUA for its Anti-SARS-CoV-2 S1 Curve ELISA (IgG). This assay enables the qualitative and semi-quantitative detection of IgG antibodies produced against the SARS-CoV-2 S1 antigen in human serum and plasma.

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

Other Factors to Note

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 fourth-quarter gross and operating margins. New product introductions are likely to 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 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 +12.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PerkinElmer carries a Zacks Rank #3.

Other Stocks Worth a Look

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

AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.

Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +2.62% and a Zacks Rank of 2.

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.

Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank of 2.

Hologic’s long-term earnings growth rate is estimated at 7.4%. The company’s earnings yield of 5.3% compares favorably with the industry’s (5.1%).

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