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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 2022 results on May 3, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 19.1%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 23.8%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.18 billion, suggesting a decline of 9.7% from the year-ago reported figure. The consensus mark for earnings stands at $2.08 per share, indicating a decrease of 44.1% from the prior-year quarter.

Diagnostics Revenues: A Key Catalyst

In the fourth quarter of 2021, with respect to business, Diagnostics, which represents 52% of total sales, grew 14% on a non-COVID basis with all three franchises growing double-digits, driven by Applied Genomics. This trend is likely to have continued in the first quarter.

In April 2022, the company announced the expansion of its in vivo imaging portfolio with the introduction of the Vega imaging system. This system is a first-of-its-kind ultrasound platform that integrates hands-free, automated technology with a high-throughput ability to advance non-invasive research and drug development studies of cancer, liver and kidney disease, cardiology and more.

In the same month, PerkinElmer launched two ready-to-use Homogenous Time Resolved Technology (HTRF) and AlphaLISA no-wash assay kits. These kits have been created to quickly and easily identify and quantify CHO host cell protein (HCP) impurities during biopharmaceutical manufacturing.

PerkinElmer, Inc. Price and EPS Surprise

PerkinElmer, Inc. Price and EPS Surprise

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

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 enable laboratories to boost sequencing throughput and make reliable variant identifications.

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

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 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

Per our proven model, 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. This is not the case here as you will see below.

Earnings ESP: PerkinElmer has an Earnings ESP of -0.40%. 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.

Stocks Worth a Look

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

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.

Zimmer Biomet's long-term earnings growth rate is estimated at 5.8%. The company's earnings yield of 5.2% compares favorably with the industry's 0.9%.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics' long-term earnings growth rate is estimated at 10%. The company's earnings yield of 5.1% compares favorably with the industry's 0.9%.

DexCom, Inc. (DXCM - Free Report) has an Earnings ESP of +9.06% and a Zacks Rank of 3.

DexCom's long-term earnings growth rate is estimated at 17.6%. The company's earnings yield of 0.8% compares favorably with the industry's (7%).

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.