) reported first-quarter adjusted (excluding one-time expenses)
earnings per share of 36 cents, missing the Zacks Consensus
Estimate of 48 cents and lower than the year-ago earnings per
share of 43 cents.
Income from continuing operations, which includes
extraordinary and one-time items, was $32.3 million (or 28 cents
per share), up 46.3% year over year.
Revenues stood at $505.4 million in the reported quarter, down
1.1% year over year, missing the Zacks Consensus Estimate of $534
Sales from the Human Health segment stood at $281.3 million,
up marginally 0.2% year over year. Revenues from the
Environmental Health segment amounted to $224 million, down
Adjusted gross margin was 47.3% in the first quarter, lower
than 49.7% in the prior-year quarter. Adjusted operating margin
was 12.6%, down 270 basis points on a year-over-year
Adjusted operating margin at the Human Health segment was
17.8%, down 160 basis points year over year. Adjusted operating
margin at the Environmental Health segment was 10.4%, down 440
bps from the year-ago quarter.
Cash and cash equivalents amounted to $125.9 million as of
March 31, 2013, down 26.6% year over year. Long-term debt,
excluding minor short-term borrowings, was $1,019.3 million, up
8.6% on a year-over-year basis.
The company currently forecasts adjusted earnings per share
for 2013 in the range of $2.00 to $2.10 (earlier $2.24 to $2.32).
Reported earnings per share from continuing operations are
forecast in the range of $1.30 to $1.40 (earlier $1.57 to $1.65).
Organic revenue is expected to increase in the low-single digit
(earlier mid-single digit).
PerkinElmer has established itself as a market leader,
particularly in the genetic screening segment, and holds one of
top two market share position in several important subsets of the
life sciences technology and genetic screening businesses.
The company continues to execute well across several product
lines aided by rebounding markets and cost containment efforts.
PerkinElmer has transferred select manufacturing to China. The
company has increased its productivity and improved product mix
in favor of higher value added products.
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
) among others.
PerkinElmer's exposure to poor end market visibility might
result in a relatively unattractive risk-reward trade-off for the
stock. However, the company's operations, both sales and
manufacturing, are diversified on a geographic basis. It has
emerged as a rapidly evolving company.
The stock carries a Zacks Rank #3 (Hold).
) are Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks,
respectively, which are expected to do well.
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