) reported fourth-quarter and fiscal 2011 adjusted (excluding
one-time expenses) earnings per share of 62 cents and $1.83,
respectively, exceeding the corresponding Zacks Consensus Estimate
of 51 cents and $1.68 as well as year-ago earnings per share of 45
cents and $1.36, respectively.
Net loss from continuing operations was $84.2 million, or 75
cents per share in the fourth quarter versus net income of $43.1
million, or 37 per share in the prior-year quarter. The results for
the reported quarter include two major non cash charges. The first
charge relates mainly to benefit plan liabilities of divested
operations and the second relates to one-time tax charges on
account of the Caliper acquisition.
Revenues from continuing operations stood at $540.2 million in
the reported quarter, up 15% year over year, beating the Zacks
Consensus Estimate of $537 million. The corresponding figure for
fiscal 2011 was $1,921 million, an increase of 12.7%, missing the
Zacks Consensus Estimate of $1,937 million.
Sales from the Human Health segment stood at $258.5 million, up
20% (up 5% on an organic basis) year over year. Revenues from
the Environmental Health segment amounted to $281.7 million, up 11%
(up 7% on an organic basis).
Adjusted gross margin was 49.9% in the fourth quarter, higher
than 46.9% in the prior-year quarter. Adjusted operating margin was
18.5%, up 250 basis points on a year-over- year
Adjusted operating margin at the Human Health segment was 22.8%,
up 350 basis points year over year. Adjusted operating margin at
the Environmental Health segment was 18.8%, up 320 bps from the
Cash and cash equivalents amounted to $142.3 million as of
January 2, 2012, down 66.1% year over year. Long-term debt,
excluding minor short-term borrowings, was $944.9 million, up
The company forecasts adjusted earnings per share for fiscal
2012 in the range of $1.98 to $2.04. Reported earnings per share
from continuing operations are forecast in the range of $1.22 to
$1.28. Organic revenue is expected to increase in the mid-single
PerkinElmer has established itself as a market leader,
particularly in the genetic screening segment, and holds one of top
two market share positions in several important subsets of the life
sciences technology and genetic screening businesses.
The company continues to execute well across all its product
lines aided by rebounding markets and cost containment efforts.
PerkinElmer's transfer of select manufacturing to China has
expanded its operating margins. The company has increased its
productivity and improved product mix in favor of higher value
added products, resulting in higher operating margins.
PerkinElmer, however, operates in a highly competitive industry
characterized by rapid technological change and evolving industry
standards. As a result, the company must make large investments in
R&D in order to retain a competitive pipeline. PerkinElmer
Thermo Fisher Scientific
) among others.
PerkinElmer's exposure to poor end market visibility might
result in a relatively unattractive risk-reward trade-off for the
stock. Our Neutral recommendation is supported by a short-term
Zacks #3 Rank (Hold).
PERKINELMER INC (
): Free Stock Analysis Report
THERMO FISHER (
): Free Stock Analysis Report
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