Shares of global technology company
) reached a new 52-week high of $41.14 in mid-day trading
yesterday. Shares of the company closed at $41.05 on the same
day, representing a strong year-to-date return of 30.9%.
PKI has a market cap of $4.6 billion. Average volume of shares
traded over the last three months was approximately 681.1K.
Investors seem to be impressed with PerkinElmer's organic growth
opportunities and cost reduction measures. The company is in the
process of transforming its business model to higher-growth
offerings through a series of acquisitions and divestitures.
PKI has increased its productivity and improved product mix in
favor of higher value added products, leading to higher operating
margins. PerkinElmer is therefore hopeful to achieve its goal of
18% adjusted operating margin for 2014.
In the third quarter of 2013, PerkinElmer posted adjusted
earnings per share of 49 cents, exceeding the Zacks Consensus
Estimate by a penny as well as the year ago level of 45 cents by
8.9%. Reported figurers are impressive as they depict a growth of
44% in EPS to 36 cents from 25 cents a year ago.
Revenues in the quarter rose 2.9% to $524.3 million and were in
line with the Zacks Consensus Estimate. Organic revenues rose 2%
in the quarter. Adjusted revenues went up only 2% to $525.1
million while organic revenues grew 2% as well.
PKI continues to expect organic revenue growth in the low-single
digit range in the year compared with 2012. PerkinElmer narrowed
its reported earnings per share guidance to $1.42-$1.45 from the
earlier range of $1.40 to $1.47 and adjusted earnings per share
to $2.04-$2.07 from $2.03 to $2.10. The current Zacks Consensus
Estimate for 2013 is $2.05.
Currently, PerkinElmer carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the scientific instruments industry
) with a Zacks Rank #1 (Strong Buy). Other stocks from the
medical products industry inlcude
), both of which have a Zacks Rank #2 (Buy).
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