PerkinElmer (PKI) Beats Q3 Earnings, Updates '17 Guidance

PerkinElmer Inc. PKI reported third-quarter 2017 adjusted earnings of 73 cents per share, beating the Zacks Consensus Estimate of 72 cents.

The company, based in Waltham, MA, reported adjusted revenues of approximately $554 million, which beat the Zacks Consensus Estimate of $552 million. Revenues also surpassed the year-ago figure of $548 million.

Segment Details

Revenues from Discovery & Analytical Solutions (DAS) totaled $385.4 million in the third quarter, up 4% from $365.1 million in the year-ago quarter.

Meanwhile, operating profit margin, as a percentage of revenues, was 16.1% compared with the prior-year quarter’s level of 16.2%.

In the Diagnostics segment, revenues were $168.9 million as compared with $149.4 million in the year-ago quarter. This reflects a 5% increase organically.

Meanwhile, operating profit margin for the segment, as a percentage of revenues, was 33.5% compared with 33.8% in the year-ago quarter.

 

PerkinElmer, Inc. Price, Consensus and EPS Surprise

 

PerkinElmer, Inc. Price, Consensus and EPS Surprise | PerkinElmer, Inc. Quote

 

Margin Details

Adjusted gross margin, as a percentage of revenues, was 49.8% in the quarter, down 10 basis points (bps) year over year. The deterioration was a result of acquisitions and divestitures executed in 2016.

Adjusted selling, general & administrative (SG&A) expenses, as a percentage of revenues, were 24.2%, down 80 bps from the year-ago quarter.

Research and Development (R&D) expenses, as a percentage of revenues, rose 40 bps in the third quarter to $34.9 million.

As a result, the company’s overall adjusted operating margin from continuing operations was 19.3% of net revenues, up 30 bps on a year-over-year basis.

Financial Details

In the first nine months of 2017, PerkinElmer’s operating cash flow from continuing operations was $165 million. The company concluded the quarter with approximately $1.1 billion in debt and $709 million in cash.

Guidance Raised

The company revised its adjusted earnings guidance for full-year 2017. PerkinElmer now expects adjusted earnings per share in the band of $2.87-$2.89, compared with the previous range of $2.84-$2.92.

Zacks Rank & Key Picks

PerkinElmer has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. PETS, Luminex Corporation LMNX and Intuitive Surgical, Inc. ISRG. Notably, PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed reported second-quarter fiscal 2018 earnings of 43 cents, up 79.2% from 24 cents in the year-ago quarter. Gross margin expanded 548 bps year over year to 35.2%.

Luminex reported third-quarter 2017 adjusted earnings of 19 cents, up 216.7% year over year. The company’s revenues in the quarter increased almost 4.1% year over year to $74.1 million.

Intuitive Surgical posted third-quarter 2017 adjusted earnings of $2.77, up 34.5% on a year-over-year basis. Revenues increased 18% year over year to $806.1 million.

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