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Can PerkinElmer (PKI) Pull a Surprise this Earnings Season?
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PerkinElmer Inc. is expected to report second-quarter 2016 results on Aug 4. Last quarter, the company reported earnings of 56 cents per share which surpassed the Zacks Consensus Estimate by 5 cents.
Notably, on an average, PerkinElmer beat the Zacks Consensus Estimate by 5.09% over the last four quarters.
Let's see how things are shaping up for this quarter.
Factors at Play
An expanding product portfolio, margin expansion and accretive acquisitions open up growth opportunities for PerkinElmer. Meanwhile, the acquisitions of Vanadis Diagnostics, Perten Instruments and Ceiba Solutions have fortified the company’s market position.
Moreover, partnerships with the likes of Sophie BioSciences, Monash Institute of Pharmacutical Sciences, Good Start Genetics and others are anticipated to drive top-line growth.
New product launches and expansion into emerging markets like China, India, Indonesia, Thailand, Mexico and Brazil are expected to be key catalysts, going forward.
For the second quarter of 2016, revenues are forecasted to grow organically by almost 4%. The current revenue guidance is pegged at the range of $570 million to $575 million. Adjusted earnings are projected in the band of 65 cents to 66 cents per share.
However, sluggish European macro-environment, the risk of foreign exchange volatility, integration risks, high debt level, restrained spending on research and challenges in Japan are expected to impede top-line growth in the near term.
Earnings Whispers
Our proven model does not conclusively show that PerkinElmer is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for PerkinElmer is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 66 cents.
Zacks Rank: PerkinElmer carries a Zacks Rank #2, which when combined with 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat this quarter:
ANI Pharmaceuticals Inc (ANIP - Free Report) , with an Earnings ESP of +2.63% and a Zacks Rank #1.
Glycomimetics Inc (GLYC - Free Report) , with an Earnings ESP of +13.64% and a Zacks Rank #1.
Humana Inc (HUM - Free Report) , with an Earnings ESP of +0.44% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Can PerkinElmer (PKI) Pull a Surprise this Earnings Season?
PerkinElmer Inc. is expected to report second-quarter 2016 results on Aug 4. Last quarter, the company reported earnings of 56 cents per share which surpassed the Zacks Consensus Estimate by 5 cents.
Notably, on an average, PerkinElmer beat the Zacks Consensus Estimate by 5.09% over the last four quarters.
Let's see how things are shaping up for this quarter.
Factors at Play
An expanding product portfolio, margin expansion and accretive acquisitions open up growth opportunities for PerkinElmer. Meanwhile, the acquisitions of Vanadis Diagnostics, Perten Instruments and Ceiba Solutions have fortified the company’s market position.
Moreover, partnerships with the likes of Sophie BioSciences, Monash Institute of Pharmacutical Sciences, Good Start Genetics and others are anticipated to drive top-line growth.
PERKINELMER INC Price and EPS Surprise
PERKINELMER INC Price and EPS Surprise | PERKINELMER INC Quote
New product launches and expansion into emerging markets like China, India, Indonesia, Thailand, Mexico and Brazil are expected to be key catalysts, going forward.
For the second quarter of 2016, revenues are forecasted to grow organically by almost 4%. The current revenue guidance is pegged at the range of $570 million to $575 million. Adjusted earnings are projected in the band of 65 cents to 66 cents per share.
However, sluggish European macro-environment, the risk of foreign exchange volatility, integration risks, high debt level, restrained spending on research and challenges in Japan are expected to impede top-line growth in the near term.
Earnings Whispers
Our proven model does not conclusively show that PerkinElmer is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for PerkinElmer is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 66 cents.
Zacks Rank: PerkinElmer carries a Zacks Rank #2, which when combined with 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat this quarter:
ANI Pharmaceuticals Inc (ANIP - Free Report) , with an Earnings ESP of +2.63% and a Zacks Rank #1.
Glycomimetics Inc (GLYC - Free Report) , with an Earnings ESP of +13.64% and a Zacks Rank #1.
Humana Inc (HUM - Free Report) , with an Earnings ESP of +0.44% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>