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PerkinElmer (PKI) to Post Q3 Earnings: What's in the Cards?
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PerkinElmer, Inc. is slated to release third-quarter 2022 results on Nov 8, before market open. In the last reported quarter, the company delivered an earnings surprise of 14.29%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 21.28%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $1.1 billion, suggesting a decline of 19.1% from the year-ago reported figure. The consensus mark for earnings stands at $1.67 per share, indicating a decrease of 34.8% from the prior-year quarter.
On its second-quarter earnings call, PerkinElmer guided third-quarter revenues to be $1.02-$1.03 billion and adjusted earnings in the range of $1.40 to $1.45 per share.
Lower COVID Revenues Likely to Hurt Diagnostics
PerkinElmer’s Diagnostics business is likely to have continued its declining trend in the third quarter from the first half of 2022. During the last reported quarter, sales of this segment declined 20%, primarily due to a drop in demand for COVID-related products. However, demand for non-COVID products was strong during the second quarter, which is likely to have partially offset lower COVID-related revenues for the segment in the soon-to-be-reported quarter.
Another Revenue Driver
In the second quarter, Discovery & Analytical Solutions business grew 29%, driven by continued robust demand for PerkinElmer’s preclinical discovery business and strength in its informatics franchise. This trend is likely to have continued in the third quarter.
Meanwhile, continued supply chain challenges and restrictions due to lockdowns in some countries are likely to have fueled material costs during the third quarter, hurting margins. However, productivity initiatives, volume leverage and strict cost control measures are likely to have benefited the company’s third-quarter gross and operating margins. New product introductions are likely to have improved product mix and, thereby gross margin.
Other Factors to Consider
In July, the company announced that the United Kingdom’s National Institute for Health and Care Excellence (NICE) added two PerkinElmer tests to its diagnostic guidance for suspected preterm pre-eclampsia.
In June, PerkinElmer announced the launch of its advanced, automated gas chromatography, headspace sampler and GC/mass spectrometry — GC 2400 platform — to help lab teams simplify lab operations, drive precise results, and perform more flexible monitoring. The company also launched an automated benchtop solution for next-generation sequencing library preparation for research use only in the same month.
These developments are likely to have positively impacted the company’s Diagnostics segment in the third quarter. This, in turn, might get reflected in the company’s to-be-reported quarter’s results.
However, PerkinElmer’s exposure to 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.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: PerkinElmer has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle:
EDAP TMS (EDAP - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 2. EDAP has an estimated revenue growth rate of 14.2% for 2023.
Masimo (MASI - Free Report) has an Earnings ESP of +4.35% and is a Zacks #3 Rank stock. MASI has an estimated earnings growth rate of 13.2% for fiscal 2023.
Masimo’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 6.96%.
Sight Sciences (SGHT - Free Report) has an Earnings ESP of +1.29% and is a Zacks #3 Ranked stock. SGHT has an estimated long-term growth rate of 24.3%.
Sight Sciences’earnings surpassed estimates in one of the trailing four quarters and lagged the same in three, the negative average being 7.71%.
Image: Bigstock
PerkinElmer (PKI) to Post Q3 Earnings: What's in the Cards?
PerkinElmer, Inc. is slated to release third-quarter 2022 results on Nov 8, before market open. In the last reported quarter, the company delivered an earnings surprise of 14.29%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 21.28%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $1.1 billion, suggesting a decline of 19.1% from the year-ago reported figure. The consensus mark for earnings stands at $1.67 per share, indicating a decrease of 34.8% from the prior-year quarter.
On its second-quarter earnings call, PerkinElmer guided third-quarter revenues to be $1.02-$1.03 billion and adjusted earnings in the range of $1.40 to $1.45 per share.
Lower COVID Revenues Likely to Hurt Diagnostics
PerkinElmer’s Diagnostics business is likely to have continued its declining trend in the third quarter from the first half of 2022. During the last reported quarter, sales of this segment declined 20%, primarily due to a drop in demand for COVID-related products. However, demand for non-COVID products was strong during the second quarter, which is likely to have partially offset lower COVID-related revenues for the segment in the soon-to-be-reported quarter.
Another Revenue Driver
In the second quarter, Discovery & Analytical Solutions business grew 29%, driven by continued robust demand for PerkinElmer’s preclinical discovery business and strength in its informatics franchise. This trend is likely to have continued in the third quarter.
Meanwhile, continued supply chain challenges and restrictions due to lockdowns in some countries are likely to have fueled material costs during the third quarter, hurting margins. However, productivity initiatives, volume leverage and strict cost control measures are likely to have benefited the company’s third-quarter gross and operating margins. New product introductions are likely to have improved product mix and, thereby gross margin.
Other Factors to Consider
In July, the company announced that the United Kingdom’s National Institute for Health and Care Excellence (NICE) added two PerkinElmer tests to its diagnostic guidance for suspected preterm pre-eclampsia.
In June, PerkinElmer announced the launch of its advanced, automated gas chromatography, headspace sampler and GC/mass spectrometry — GC 2400 platform — to help lab teams simplify lab operations, drive precise results, and perform more flexible monitoring. The company also launched an automated benchtop solution for next-generation sequencing library preparation for research use only in the same month.
PerkinElmer, Inc. Price and Consensus
PerkinElmer, Inc. price-consensus-chart | PerkinElmer, Inc. Quote
These developments are likely to have positively impacted the company’s Diagnostics segment in the third quarter. This, in turn, might get reflected in the company’s to-be-reported quarter’s results.
However, PerkinElmer’s exposure to 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.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: PerkinElmer has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle:
EDAP TMS (EDAP - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 2. EDAP has an estimated revenue growth rate of 14.2% for 2023.
EDAP’saverage earnings surprise in the trailing four quarters was 250.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo (MASI - Free Report) has an Earnings ESP of +4.35% and is a Zacks #3 Rank stock. MASI has an estimated earnings growth rate of 13.2% for fiscal 2023.
Masimo’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 6.96%.
Sight Sciences (SGHT - Free Report) has an Earnings ESP of +1.29% and is a Zacks #3 Ranked stock. SGHT has an estimated long-term growth rate of 24.3%.
Sight Sciences’earnings surpassed estimates in one of the trailing four quarters and lagged the same in three, the negative average being 7.71%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.