PerkinElmer
(
PKI
) reported first-quarter 2012 adjusted (excluding one-time
expenses) earnings per share of 43 cents exceeding the
corresponding Zacks Consensus Estimate of 41 cents as well as the
year-ago earnings per share of 35 cents.
Net income from continuing operations was $22.1 million, or 19
cents per share, in the first quarter versus net income of $27.3
million, or 24 per share in the prior-year quarter. The results for
the reported quarter include non-cash expenses pertaining to
takeovers in 2011.
Revenues
Revenues from continuing operations stood at $510.9 million in
the reported quarter, up 14% year over year, beating the Zacks
Consensus Estimate of $509 million.
Segment-wise Revenue
Sales from the Human Health segment stood at $254 million, up
26% (up 9% on an organic basis) year over year. Revenues from the
Environmental Health segment amounted to $256.9 million, up 5% (up
3% on an organic basis).
Margins
Adjusted gross margin was 49.7% in the first quarter, higher
than 47.4% in the prior-year quarter. Adjusted operating margin was
15.3%, up 160 basis points on a year-over-year
basis.
Adjusted operating margin at the Human Health segment was 20.4%,
up 200 basis points year over year. Adjusted operating margin at
the Environmental Health segment was 14.4%, up 30 bps from the
year-ago quarter.
Balance Sheet
Cash and cash equivalents amounted to $144.7 million as of April
1, 2012, down 65.2% year over year. Long-term debt was $934
million, up 81.7%.
Outlook
PerkinElmer projects reported earnings per share in a band of
$1.27 to $1.32 (earlier $1.22 to $1.28). The company expects
adjusted earnings per share of about $2 to $2.05 (earlier $1.98 to
$2.04). PerkinElmer reiterated its guidance for organic revenue to
increase in the mid-single digits.
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
competes with
Thermo Fisher Scientific
(
TMO
) 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 (
PKI
): Free Stock Analysis Report
THERMO FISHER (
TMO
): Free Stock Analysis Report
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