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PerkinElmer (PKI) Beats on Q4 Earnings, Issues 2018 Guidance
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PerkinElmer Inc. reported fourth-quarter 2017 adjusted earnings of 97 cents per share, beating the Zacks Consensus Estimate of 94 cents.
Based in Waltham, MA, the leading MedTech company reported adjusted revenues of approximately $641.6 million, which beat the Zacks Consensus Estimate of $617 million. Revenues also surpassed the year-ago quarter’s figure of $567 million. The stock has a Zacks Rank #2 (Buy).
2017 at a Glance
Adjusted earnings per share was $2.90 compared with $2.60 in 2016. Adjusted revenues for the year were $2.26 billion compared with $2.116 billion in 2016.
In 2017, PerkinElmer successfully launched a number of products, which resulted in solid organic revenue growth. Further, the divestiture of the Medical Imaging business and the closing of the EUROIMMUN transaction are noteworthy.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
Revenues from DAS totaled $448.2 million in the fourth quarter, up 9.3% from $409.9 million in the year-ago quarter. PerkinElmer has been focusing on finalizing the organizational changes associated with the life sciences business in the DAS unit.
Coming to the profits at the DAS segment, the company reported fourth-quarter 2017 adjusted operating income of $93.7 million, up from $82.9 million in the year-ago quarter. As a percentage of revenues, adjusted operating profit margin was 20.9%, UP 70 basis points (bps) year over year.
Diagnostics segment
Revenues were $193.4 million compared with $156.8 million in the year-ago quarter. This reflects an improvement of 6% organically.
The divestment of medical imaging business and the acquisition of EUROIMMUN Medical Laboratory Diagnostics AG has been the major driver for the segment. PerkinElmer announced the completion of the buyout of EUROIMMUN for approximately $1.3 billion in cash in December 2017. EUROIMMUN is an autoimmune testing company and an emerging player in infectious disease and allergy testing (read more: PerkinElmer Closes EUROIMMUN Acquisition for $1.3B).
Meanwhile, operating profit margin in the segment, as a percentage of revenues, was 30.8%, up 20 bps year over year.
Margin Details
Adjusted gross margin, as a percentage of revenues, was 47.9% in the quarter, down 85 basis points (bps) year over year. The downside was caused by acquisitions and divestitures executed in 2016. The company expects significant gross margin expansion over the next three years. PerkinElmer continues to be on track to achieve operating margins of 22% of net revenues by the year 2020.
Financial Details
At the end of the quarter, operating cash flow from continuing operations was approximately $292 million, which includes $17 million of EUROIMMUN deal related cost and prepaid royalties. The company ended the year with approximately $2 billion of debt and $202 million of cash.
Guidance
The company issued adjusted earnings guidance for 2018. PerkinElmer expects adjusted earnings of $3.50 per share. Further, it expects reported revenues in the range of $2.72-$2.74 billion, which includes approximately $25 million in foreign exchange tailwinds and approximately $360 million reported revenues from EUROIMMUN. PerkinElmer is projects 5-6% organic revenue growth in 2018.
Geographically, PerkinElmer expects mid single-digit organic revenue growth in the Americas and Europe with mid to high single-digit organic revenue growth in Asia. Gross margin in 2018 is likely to expand 150 bps on a year-over-year basis.
For the first quarter of 2018, PerkinElmer projects reported revenues at approximately $615 million, which represents mid single digit organic revenue growth. Adjusted earnings per share are estimated in the range of 59-61 cents.
Key Picks
Other top-ranked stocks in the broader medical sector are Amedisys (AMED - Free Report) , Bio-Rad Laboratories (BIO - Free Report) and ABIOMED .
Amedisys has a long-term expected earnings growth rate of 18.5%. The stock carries a Zacks Rank #2.
ABIOMED has a long-term expected earnings growth rate of 31.5%. The stock carries a Zacks Rank #2.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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PerkinElmer (PKI) Beats on Q4 Earnings, Issues 2018 Guidance
PerkinElmer Inc. reported fourth-quarter 2017 adjusted earnings of 97 cents per share, beating the Zacks Consensus Estimate of 94 cents.
Based in Waltham, MA, the leading MedTech company reported adjusted revenues of approximately $641.6 million, which beat the Zacks Consensus Estimate of $617 million. Revenues also surpassed the year-ago quarter’s figure of $567 million. The stock has a Zacks Rank #2 (Buy).
2017 at a Glance
Adjusted earnings per share was $2.90 compared with $2.60 in 2016. Adjusted revenues for the year were $2.26 billion compared with $2.116 billion in 2016.
In 2017, PerkinElmer successfully launched a number of products, which resulted in solid organic revenue growth. Further, the divestiture of the Medical Imaging business and the closing of the EUROIMMUN transaction are noteworthy.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
PerkinElmer, Inc. Price, Consensus and EPS Surprise | PerkinElmer, Inc. Quote
Segment Details
Discovery & Analytical Solutions (DAS)
Revenues from DAS totaled $448.2 million in the fourth quarter, up 9.3% from $409.9 million in the year-ago quarter. PerkinElmer has been focusing on finalizing the organizational changes associated with the life sciences business in the DAS unit.
Coming to the profits at the DAS segment, the company reported fourth-quarter 2017 adjusted operating income of $93.7 million, up from $82.9 million in the year-ago quarter. As a percentage of revenues, adjusted operating profit margin was 20.9%, UP 70 basis points (bps) year over year.
Diagnostics segment
Revenues were $193.4 million compared with $156.8 million in the year-ago quarter. This reflects an improvement of 6% organically.
The divestment of medical imaging business and the acquisition of EUROIMMUN Medical Laboratory Diagnostics AG has been the major driver for the segment. PerkinElmer announced the completion of the buyout of EUROIMMUN for approximately $1.3 billion in cash in December 2017. EUROIMMUN is an autoimmune testing company and an emerging player in infectious disease and allergy testing (read more: PerkinElmer Closes EUROIMMUN Acquisition for $1.3B).
Meanwhile, operating profit margin in the segment, as a percentage of revenues, was 30.8%, up 20 bps year over year.
Margin Details
Adjusted gross margin, as a percentage of revenues, was 47.9% in the quarter, down 85 basis points (bps) year over year. The downside was caused by acquisitions and divestitures executed in 2016. The company expects significant gross margin expansion over the next three years. PerkinElmer continues to be on track to achieve operating margins of 22% of net revenues by the year 2020.
Financial Details
At the end of the quarter, operating cash flow from continuing operations was approximately $292 million, which includes $17 million of EUROIMMUN deal related cost and prepaid royalties. The company ended the year with approximately $2 billion of debt and $202 million of cash.
Guidance
The company issued adjusted earnings guidance for 2018. PerkinElmer expects adjusted earnings of $3.50 per share. Further, it expects reported revenues in the range of $2.72-$2.74 billion, which includes approximately $25 million in foreign exchange tailwinds and approximately $360 million reported revenues from EUROIMMUN. PerkinElmer is projects 5-6% organic revenue growth in 2018.
Geographically, PerkinElmer expects mid single-digit organic revenue growth in the Americas and Europe with mid to high single-digit organic revenue growth in Asia. Gross margin in 2018 is likely to expand 150 bps on a year-over-year basis.
For the first quarter of 2018, PerkinElmer projects reported revenues at approximately $615 million, which represents mid single digit organic revenue growth. Adjusted earnings per share are estimated in the range of 59-61 cents.
Key Picks
Other top-ranked stocks in the broader medical sector are Amedisys (AMED - Free Report) , Bio-Rad Laboratories (BIO - Free Report) and ABIOMED .
Bio-Rad Laboratories flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company has a long-term expected earnings growth rate of 25%.
Amedisys has a long-term expected earnings growth rate of 18.5%. The stock carries a Zacks Rank #2.
ABIOMED has a long-term expected earnings growth rate of 31.5%. The stock carries a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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