) posted adjusted earnings per share (EPS) of 51 cents in the
second quarter of 2013, beating the Zacks Consensus Estimate of
48 cents. However, the top line lagged the year-ago earnings of
53 cents by nearly 4%. Reported EPS fell 17.2% to 24 cents from
29 cents a year ago, mainly due to significant rise in
restructuring and contract termination charges.
Revenues in the quarter rose 4.1% to $543.3 million, exceeding
the Zacks Consensus Estimate of $534 million. The increase was
driven by improvements in PKI's both operating segments.
Adjusted operating income for the quarter declined 5.0% to $85.2
million from $89.7 million a year ago. Adjusted operating margin
fell 130 basis points (bps) to 15.6% from 16.9% in the second
quarter of 2012.
Revenues from the Human Health segment went up 4.2% to $300.0
million while organic revenues increased 2%. However, adjusted
operating income fell 3.3% to $64.4 million compared with $66.6
million in the same quarter a year ago. Adjusted operating margin
declined 110 bps to 21.2% in the quarter.
Revenues from Environmental Health rose 4.0% to $243.4 million
with a 3% increase in organic revenues. Operating income dipped
34.1% to $19.3 million from $29.3 million in the second quarter
of 2012. Adjusted operating margin ebbed 160 bps to 12.5%
compared with the year-ago level.
PerkinElmer had cash and cash equivalents of $112.5 million as of
Jun 30, 2013, down from $171.4 million as of Dec 31, 2012. Total
debt rose to $1.0 billion as of Jun 30, 2013 compared with $940.6
million as of Dec 31, 2012.
In the first six months of 2013, cash flow from operating
activities fell significantly by 58.2% to $38.7 million from
$92.7 million in the same period of 2012, mainly driven by higher
inventories. Capital expenditure (adjusted) almost doubled to
$22.9 million compared with $11.4 million a year ago.
PerkinElmer expects organic revenues to increase in the
low-single digit range in the year compared with 2012. PKI also
expects reported earnings per share in the range of $1.40 to
$1.47 and adjusted earnings per share between $2.03 and $2.10
compared with the prior guidance of $2.00 to $2.10.
PerkinElmer, Inc. is a global technology company which provides
products and systems to the telecom, medical, pharmaceutical,
chemical, semiconductor and photographic markets. PKI has
operations in over 100 countries, and is a component of the
S&P 500 Index. Currently, it retains a Zacks Rank #4 (Sell).
Other stocks that are performing well in the medical instruments
LeMaitre Vascular, Inc.
Measurement Specialties Inc.
). Hanger and LeMaitre Vascular are Zacks Rank #1 (Strong Buy)
stocks while Measurement Specialties retains a Zacks Rank #2
HANGER ORTHOPED (HGR): Free Stock Analysis
LEMAITRE VASCLR (LMAT): Free Stock Analysis
MEASUREMNT SPCL (MEAS): Free Stock Analysis
PERKINELMER INC (PKI): Free Stock Analysis
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