) reported second quarter 2012 adjusted (excluding one-time
expenses) earnings per share of 53 cents, beating the corresponding
Zacks Consensus Estimate of 48 cents.
Net income from continuing operations in the reported quarter
was $33.6 million (or 29 cents per share), up 12.3% year over
Revenues came in at $521.8 million in the reported quarter, up
8.9% year over year, but missing the Zacks Consensus Estimate of
Growth was aided by an extended product portfolio comprising
innovative and improved offerings from PerkinElmer. Revenues grew
5% year over year on an organic basis after adjustment for
acquisitions which contributed 8% to the growth in revenues in the
quarter and a 4% drop after accounting for foreign currency.
Human Health segment revenues were $258.4 million, up 18.1% (up
4% on an organic basis) year over year. Revenues from the
Environmental Health segment amounted to $263.4 million in the
quarter, up 1.2% (up 5% on an organic basis).
Adjusted gross margin was 49.3% in the second quarter, up 210
basis points year over year. Adjusted operating margin was 16.9%,
up 240 basis points on a year-over-year basis.
Adjusted operating margin at the Human Health segment was 21.6%,
up 130 basis points year over year. Adjusted operating margin at
the Environmental Health segment was 15.9%, up 210 basis points
from the year-ago quarter.
PerkinElmer ended the second quarter with cash and cash
equivalents of $171.4 million, down 56.6% year over year. Long-term
debt was $911 million, up 35.8%. Cash flow from continuing
operations increased almost 41% year over year to $77.4 million in
For 2012, PerkinElmer reaffirmed its guidance for organic
revenue to increase in the mid-single digits. The company
continues to expect adjusted earnings per share of about $2 to
$2.05 for 2012. PerkinElmer revised its forecasts for reported
earnings per share in a range of $1.21 to $1.26 compared with the
prior guidance in the band of $1.27 to $1.32.
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 would have to 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. Our Neutral recommendation is supported by a short-term
Zacks #3 Rank (Hold).
PERKINELMER INC (PKI): Free Stock Analysis
THERMO FISHER (TMO): Free Stock Analysis Report
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