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PerkinElmer (PKI) Completes Divestment, New Business Name in Q2
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PerkinElmer Inc. announced the completion of the divesture of its Applied, Food and Enterprise Services ("AES") business to an investment firm, New Mountain Capital. The company had signed an agreement with the firm last August for the divesture of its AES business for up to $2.45 billion in total consideration.
The AES business was part of PKI’s Discovery & Analytical Solutions segment. This business, along with the Life Sciences and Diagnostics business, will continue to share the PerkinElmer name for some time.
The company stated that it will unveil a new name, brand and ticker symbol for the Life Sciences and Diagnostics business during the second quarter of 2023, following approval from shareholders.
Rationale Behind Divestment
The divestment will result in two separate entities — the AES business with sustained revenue generation and the high-growth Life Sciences and Diagnostics business. This will provide funding boost to the fast-growing Life Sciences and Diagnostics business.
The new Life Sciences and Diagnostics business, following the divesture, is focused on developing and delivering novel scientific breakthroughs that will have a significant role in improving global health.
PerkinElmer launched the EnVision Nexus system last month, which is its fastest and most sensitive multimode plate reader to date. The platform has been designed for demanding high-throughput screening applications and for accelerating drug discovery efforts, boosting research workflows. The latest launch will likely strengthen PerkinElmer's Life Sciences business unit in the broader Discovery & Analytical Solutions segment.
Last month, the company announced robust fourth-quarter results, beating market expectations for both top and bottom line. It witnessed a solid performance at Discover & Analytics Solutions segment in the quarter under review. The segment’s revenues were $695 million, indicating an increase of 6.1% from the year-ago quarter. Organically, it witnessed an increase of 11%.
Revenues from continuing operations were $347.4 million, up 9.1% year over year. Organically, the metric was up 13%. The company reported fourth-quarter 2022 adjusted operating income of $203.6 million for the segment, up 41.5% from the year-ago quarter.
Revenues at the Diagnostics segment were $394 million, down 44.5% on a year-over-year basis. Organically, the segment’s revenues decreased 39%. Adjusted operating income was $113 million, down 66.2% from the year-ago quarter.
Zacks Rank & Stocks to Consider
Baxter currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Becton, Dickinson and Company (BDX - Free Report) , Henry Schein (HSIC - Free Report) and The Cooper Companies (COO - Free Report) .
Becton, Dickinson and Company, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 7.8%. Its earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.47%.
BDX has declined 9.9% against the industry’s 0.7% growth in the past six months.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.1%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, the average surprise being 2.97%.
HSIC has gained 7.8% compared with the industry’s 0.8% growth in the past six months.
The Cooper Companies, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. Its earnings missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 1.82%.
COO has gained 11.3% compared with the industry’s 0.8% growth over the past six months.
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PerkinElmer (PKI) Completes Divestment, New Business Name in Q2
PerkinElmer Inc. announced the completion of the divesture of its Applied, Food and Enterprise Services ("AES") business to an investment firm, New Mountain Capital. The company had signed an agreement with the firm last August for the divesture of its AES business for up to $2.45 billion in total consideration.
The AES business was part of PKI’s Discovery & Analytical Solutions segment. This business, along with the Life Sciences and Diagnostics business, will continue to share the PerkinElmer name for some time.
The company stated that it will unveil a new name, brand and ticker symbol for the Life Sciences and Diagnostics business during the second quarter of 2023, following approval from shareholders.
Rationale Behind Divestment
The divestment will result in two separate entities — the AES business with sustained revenue generation and the high-growth Life Sciences and Diagnostics business. This will provide funding boost to the fast-growing Life Sciences and Diagnostics business.
The new Life Sciences and Diagnostics business, following the divesture, is focused on developing and delivering novel scientific breakthroughs that will have a significant role in improving global health.
PerkinElmer, Inc. Price
PerkinElmer, Inc. price | PerkinElmer, Inc. Quote
Notable Developments
PerkinElmer launched the EnVision Nexus system last month, which is its fastest and most sensitive multimode plate reader to date. The platform has been designed for demanding high-throughput screening applications and for accelerating drug discovery efforts, boosting research workflows. The latest launch will likely strengthen PerkinElmer's Life Sciences business unit in the broader Discovery & Analytical Solutions segment.
Last month, the company announced robust fourth-quarter results, beating market expectations for both top and bottom line. It witnessed a solid performance at Discover & Analytics Solutions segment in the quarter under review. The segment’s revenues were $695 million, indicating an increase of 6.1% from the year-ago quarter. Organically, it witnessed an increase of 11%.
Revenues from continuing operations were $347.4 million, up 9.1% year over year. Organically, the metric was up 13%. The company reported fourth-quarter 2022 adjusted operating income of $203.6 million for the segment, up 41.5% from the year-ago quarter.
Revenues at the Diagnostics segment were $394 million, down 44.5% on a year-over-year basis. Organically, the segment’s revenues decreased 39%. Adjusted operating income was $113 million, down 66.2% from the year-ago quarter.
Zacks Rank & Stocks to Consider
Baxter currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Becton, Dickinson and Company (BDX - Free Report) , Henry Schein (HSIC - Free Report) and The Cooper Companies (COO - Free Report) .
Becton, Dickinson and Company, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 7.8%. Its earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.47%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BDX has declined 9.9% against the industry’s 0.7% growth in the past six months.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.1%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, the average surprise being 2.97%.
HSIC has gained 7.8% compared with the industry’s 0.8% growth in the past six months.
The Cooper Companies, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. Its earnings missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 1.82%.
COO has gained 11.3% compared with the industry’s 0.8% growth over the past six months.