We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PerkinElmer (PKI) to Report Q1 Earnings: What's in Store?
Read MoreHide Full Article
PerkinElmer, Inc. is slated to release first-quarter 2020 results on May 5, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 2.3%. Further, it has a trailing four-quarter positive earnings surprise of 2.7%, on average.
Q1 Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share is pegged at 50 cents, suggesting a decline of 27.5% from the year-ago quarter. The same for revenues stands at $652.9 million, indicating an improvement of 0.7% from the prior-year reported figure.
Diagnostics Revenues: A Key Catalyst
PerkinElmer's Diagnostics segment is likely to have contributed significantly to the first-quarter performance. Sustained growth across the company's reproductive health and immunodiagnostics is anticipated to get reflected in the segment’s revenues in the quarter to be reported.
Rising demand for early diagnosis and increase in adoption of new technologies has been fueling growth across all three of segments of reproductive health, immunodiagnostics and genomics. This might have benefited the to-be-reported quarter.
Further, the continued rise in infectious and autoimmune diseases, especially in emerging markets, is likely to have aided the segment.
Also, with the coronavirus outbreak intensifying in late February, the company received Emergency Use Authorization (EUA) from the FDA for its New Coronavirus reverse transcription polymerase chain reaction (RT-PCR) test in March. With this test kit, PerkinElmer may have boosted its Diagnostics business and strengthened presence in the global infectious disease diagnostics market.
Other Factors to Note
PerkinElmer is likely to have witnessed solid international growth in the to-be-reported quarter. Improved growth momentum in APAC and Europe, and consistent growth trend in the United States is likely to have contributed to the first-quarter performance. However, it is important to note here that the coronavirus outbreak may have weighed on international growth during the first quarter.
Acquisition of Cisbio is likely to have positively impacted PerkinElmer’s first-quarter performance.
During fourth-quarter 2019, PerkinElmer introduced several new Cisbio kits for phosphorylate and total protein and biomarker detection.
Moreover, in December, the company received the FDA approval for its GSP Neonatal Creatine Kinase – MM (CK-MM) kit, which is the first commercially available assay for screening newborns affected by Duchenne muscular dystrophy (DMD).
Thus, the positive impact of such developments is likely to get reflected in the first-quarter results.
Additionally, the company’s Discovery product portfolio is likely to have witnessed strong demand on the back of probable robust performance by life sciences.
The company’s bottom line is anticipated to reflect organic revenue growth and better margin expansion. In fact, for the first quarter, earnings per share is estimated at 70 cents. In terms of revenues, the company projects reported revenues of $700 million in the first quarter, representing 6% organic revenue growth.
Productivity initiatives and volume leverage are likely to have contributed to the company’s gross and operating margins in the first quarter. New product introductions might have improved product mix and thereby gross margin.
Additionally, the company has been implementing plans to invest in high-growth areas and shift the organization to a more unified structure. This, in turn, is likely to have driven operating margin expansion in the to-be-reported quarter.
However, PerkinElmer’s exposure to the international markets increases the risk of foreign exchange volatility. In fact, the company anticipates foreign exchange to affect first-quarter 2020 results by approximately $8 million.
Here’s What the Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here as you will see below.
Earnings ESP: PerkinElmer has an Earnings ESP of -7.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PerkinElmer carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.76% and a Zacks Rank of 3.
Aurora Cannabis Inc. (ACB - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
PerkinElmer (PKI) to Report Q1 Earnings: What's in Store?
PerkinElmer, Inc. is slated to release first-quarter 2020 results on May 5, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 2.3%. Further, it has a trailing four-quarter positive earnings surprise of 2.7%, on average.
Q1 Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share is pegged at 50 cents, suggesting a decline of 27.5% from the year-ago quarter. The same for revenues stands at $652.9 million, indicating an improvement of 0.7% from the prior-year reported figure.
Diagnostics Revenues: A Key Catalyst
PerkinElmer's Diagnostics segment is likely to have contributed significantly to the first-quarter performance. Sustained growth across the company's reproductive health and immunodiagnostics is anticipated to get reflected in the segment’s revenues in the quarter to be reported.
Rising demand for early diagnosis and increase in adoption of new technologies has been fueling growth across all three of segments of reproductive health, immunodiagnostics and genomics. This might have benefited the to-be-reported quarter.
PerkinElmer, Inc. Price and EPS Surprise
PerkinElmer, Inc. price-eps-surprise | PerkinElmer, Inc. Quote
Further, the continued rise in infectious and autoimmune diseases, especially in emerging markets, is likely to have aided the segment.
Also, with the coronavirus outbreak intensifying in late February, the company received Emergency Use Authorization (EUA) from the FDA for its New Coronavirus reverse transcription polymerase chain reaction (RT-PCR) test in March. With this test kit, PerkinElmer may have boosted its Diagnostics business and strengthened presence in the global infectious disease diagnostics market.
Other Factors to Note
PerkinElmer is likely to have witnessed solid international growth in the to-be-reported quarter. Improved growth momentum in APAC and Europe, and consistent growth trend in the United States is likely to have contributed to the first-quarter performance. However, it is important to note here that the coronavirus outbreak may have weighed on international growth during the first quarter.
Acquisition of Cisbio is likely to have positively impacted PerkinElmer’s first-quarter performance.
During fourth-quarter 2019, PerkinElmer introduced several new Cisbio kits for phosphorylate and total protein and biomarker detection.
Moreover, in December, the company received the FDA approval for its GSP Neonatal Creatine Kinase – MM (CK-MM) kit, which is the first commercially available assay for screening newborns affected by Duchenne muscular dystrophy (DMD).
Thus, the positive impact of such developments is likely to get reflected in the first-quarter results.
Additionally, the company’s Discovery product portfolio is likely to have witnessed strong demand on the back of probable robust performance by life sciences.
The company’s bottom line is anticipated to reflect organic revenue growth and better margin expansion. In fact, for the first quarter, earnings per share is estimated at 70 cents. In terms of revenues, the company projects reported revenues of $700 million in the first quarter, representing 6% organic revenue growth.
Productivity initiatives and volume leverage are likely to have contributed to the company’s gross and operating margins in the first quarter. New product introductions might have improved product mix and thereby gross margin.
Additionally, the company has been implementing plans to invest in high-growth areas and shift the organization to a more unified structure. This, in turn, is likely to have driven operating margin expansion in the to-be-reported quarter.
However, PerkinElmer’s exposure to the international markets increases the risk of foreign exchange volatility. In fact, the company anticipates foreign exchange to affect first-quarter 2020 results by approximately $8 million.
Here’s What the Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here as you will see below.
Earnings ESP: PerkinElmer has an Earnings ESP of -7.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PerkinElmer carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Luminex Corporation has an Earnings ESP of +14.28% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.76% and a Zacks Rank of 3.
Aurora Cannabis Inc. (ACB - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>