PerkinElmer, Inc. ( PKI Quick Quote PKI - Free Report) reported first-quarter 2020 adjusted earnings per share (EPS) of 67 cents, which beat the Zacks Consensus Estimate of 47 cents per share by 42.6%. However, the bottom line declined 2.9% from the year-ago quarter. Based in Waltham, MA, this leading MedTech company reported revenues of $652.4 million, up 0.6% from the year-ago quarter but fell 1% organically. Adjusted revenues in the reported quarter came in at $652.6 million, 0.6% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.8%. Segment Details Discover & Analytics Solutions At this segment, revenues totaled $398.4 million, reflecting an improvement of 2.5% from the year-ago quarter. Organically, the segment saw a decline of 1% in the quarter under review. Per management, continued strength in life sciences was more than offset by weak performance in food and applied markets. Coming to profits at the DAS segment, the company reported first-quarter 2020 adjusted operating income of $54.4 million, up 0.2% from the year-ago quarter. Diagnostics segment Revenues at this segment amounted to $254 million, down 2.3% on a year-over-year basis. Organically, the segment deteriorated 1% in the first quarter. Per management, strength in applied genomics business was noticeably offset by modest decline across reproductive health and immunodiagnostics business lines. Adjusted operating income in the segment totaled $90.6 million, up 5.6% from the year-ago quarter. Geographical Details Per management, the major geographies witnessed a mixed first quarter, with mid-single digit organic revenue growth in the United States. While Europe saw double-digit growth, Asia Pacific (APAC) witnessed a double-digit decline on account of the COVID-19 pandemic in China, which was down over 30%. Margin Analysis Adjusted gross profit in the quarter came in at $325.4 million, up 0.7% year over year. Adjusted gross margin, as a percentage of revenues was 49.9%, up 10 bps year over year. Adjusted operating income was $99.6 million, down 5.3% year over year. Adjusted operating margin, as a percentage of revenues was 15.3%, down 90 bps. Financial Update The company exited the first quarter with cash and cash equivalents came in at $195.1 million, increasing 1.7% from the year-end 2019. During the reported quarter, net cash provided by operating activities came in at $60.1 million, compared with net cash used in operating activities of $5.3 million in the year-ago period. 2020 Guidance Due to the uncertainty regarding the magnitude and duration of the COVID-19 pandemic, and the scope of a potential customer activity rebound, PerkinElmer has withdrawn its previously issued (Jan 27, 2020) full-year 2020 outlook. Nonetheless, the company anticipates adjusted earnings per share of at least 65 cents in second-quarter 2020. Revenues are anticipated between $610 million and $720 million. Conclusion PerkinElmer exited the first quarter on a strong note, with both earnings and revenues surpassing their respective consensus marks. The company witnessed modest performance by its core Discover & Analytics Solutions unit in the quarter under review. Modest growth in Europe and United States is also encouraging. Further, expansion in gross margin buoys optimism. Solid show by Tulip and EUROIMMUN also paints a bright picture. However, negative currency movements impacted the company’s top line in the quarter under review. Further, Diagnostics segment displayed weak performance in the first quarter. Furthermore, PerkinElmer continues to make acquisitions, which increases integration risks. Zacks Rank Currently, PerkinElmer carries a Zacks Rank #3 (Hold). Key Picks Some better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. ( BIIB Quick Quote BIIB - Free Report) and Eli Lilly and Company ( LLY Quick Quote LLY - Free Report) . Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, beating the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million surpassed the consensus mark by 14.6%. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly reported first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1. Today's Best Stocks from Zacks Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%. This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year. See their latest picks free >>