On May 16, 2013, we downgraded our recommendation on
) to Underperform based on its first quarter earnings results and
On Apr 25, PerkinElmer announced its results for the reported
quarter. The company 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.
Revenues stood at $505.4 million in the reported quarter, down
1.1% year over year, missing the Zacks Consensus Estimate of $534
PerkinElmer cut guidance for 2013. 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
While PerkinElmer has made several acquisitions, the strategy
has inherent risks and it remains a collection of diverse
businesses. Further, restructuring charges are expected to grow
in 2013. Also, the overall portfolio strategy remains
Over the past month, the Zacks Consensus Estimate for 2013 has
dipped 6.1% to $2.05. The Zacks Consensus Estimate for 2014 has
gone down 8.1% over the same timeframe.
The stock carries a Zacks Rank #5 (Strong Sell). We are more
Becton, Dickinson and Company
HeartWare International Inc.
) each of which carries a Zacks Rank #2 (Buy) and is expected to
do well. In addition,
) carries a Zacks Rank #1 (Strong Buy) and warrants a look.
BECTON DICKINSO (BDX): Free Stock Analysis
CONCEPTUS INC (CPTS): Free Stock Analysis
HEARTWARE INTL (HTWR): Free Stock Analysis
PERKINELMER INC (PKI): Free Stock Analysis
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