PerkinElmer, Inc. (PKI - Free Report) reported first-quarter 2019 adjusted earnings per share (EPS) of 69 cents which outpaced the Zacks Consensus Estimate by 4.5%. The bottom line rose 9.5% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $648.7 million, up 0.7% from the year-ago quarter and improved 5% organically. Adjusted revenues in the quarter came in at $648.9 million, up 0.7% year over year. Notably, the top line beat the Zacks Consensus Estimate of $644 million.
At this segment, revenues totaled $388.8 million, reflecting a decrease of 1.9% from the year-ago quarter. Organically, the segment grew 2% in the quarter under review. Per management, the first-quarter performance was impacted by several unique timing items. However, solid show by pharma biotech end market contributed to organic revenue growth.
Coming to profits at the DAS segment, the company reported first-quarter 2019 adjusted operating income of $54.3 million, down 6.1% from the year-ago quarter.
Revenues at this segment amounted to $259.9 million, up 5.1% on a year-over-year basis. Adjusted revenues in the segment totaled $260.1 million, up 5% from the prior-year quarter. Organically, the segment grew 9% in the first quarter.
Adjusted operating income in the segment totaled $66 million, up significantly by 25.2% year over year. Per management, the upside can be attributed to strength across reproductive health, applied genomics and immunodiagnostics business.
Per management’s expectations, the major geographies witnessed a mixed first quarter, with high-single digit organic revenue growth in the United States and mid-single digit organic revenue growth in Asia Pacific (APAC). This was partially offset by a low-single digit organic revenue decrease in Europe. Organic revenue growth in China came in high-single digits (excluding the impact of lost revenues due to the U.S. Government shutdown).
Gross profit in the quarter came in at $323.1 million, up 3.1% year over year. Adjusted gross margin, as a percentage of revenues, was 49.8%, up 120 bps year over year.
Adjusted operating margin was $105.2 million, up 9.7% year over year. Adjusted operating margin, as a percentage of revenues, was 16.2% in the quarter, up 130 bps.
2019 Guidance Raised
PerkinElmer expects 2019 adjusted EPS in the range of $4.02-$4.07, up from the previously guided range of $4.00-$4.05. Notably, the Zacks Consensus Estimate of $4.03 lies within the guided range.
In the first quarter, the company announced the buyout of Cisbio Bioassays – a leading custom assay service provider. The addition of Cisbio strengthens PerkinElmer’s position in life sciences and diagnostics markets.
PerkinElmer exited the first quarter on a solid note, with both EPS and revenues beating the consensus mark. The company witnessed strong performances by its core Diagnostics units in the quarter under review. Strength in reproductive health, applied genomics and immunodiagnostics business lines led to the impressive performance. Growth in international markets is also encouraging.
Expansion in both gross and operating margins too buoys optimism. Solid show by Tulip and EUROIMMUN also paints a bright picture.
Meanwhile, negative currency movements impacted the company’s top line in the quarter under review. Furthermore, PerkinElmer continues its acquisition spree, which increases integration risks.
Currently, PerkinElmer carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Other top-ranked stocks which posted solid results this earning season are Stryker Corporation (SYK - Free Report) , Abbott Laboratories (ABT - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
Abbott reported first-quarter 2019 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 3.3%. First-quarter worldwide sales came in at $7.54 billion, outpacing the Zacks Consensus Estimate of $7.47 billion.
CONMED delivered first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the Zacks Consensus Estimate of $213 million.
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