) reported fourth-quarter and 2012 adjusted (excluding one-time
expenses) earnings per share of 65 cents and $2.06, respectively,
meeting the corresponding Zacks Consensus Estimates and beating
the year-ago earnings per share of 62 cents and $1.83,
Net loss from continuing operations was $16.2 million, or 14
cents per share, in the fourth quarter versus net loss of $83.2
million, or 74 cents per share, in the prior-year quarter. The
results for the reported quarter include mark-to-market charges
for pension plans and non cash charges related to trade
Revenues from continuing operations stood at $572.9 million in
the reported quarter, up 6.2% (organic growth of 3%) year over
year, missing the Zacks Consensus Estimate of $580 million. The
corresponding figure for fiscal 2012 was $2,115.2 million, an
increase of 10.3% (organic growth of 5%), missing the Zacks
Consensus Estimate of $2,143 million.
Sales from the Human Health segment stood at $274.5 million,
up 6.5% (up 3% on an organic basis) year over year.
Revenues from the Environmental Health segment amounted to $298.4
million, up 5.9% (up 3% on an organic basis).
Adjusted gross margin was 48.8% in the fourth quarter, lower
than 49.9% in the prior-year quarter. Adjusted operating margin
was 18.3%, down 20 basis points on a year-over-year
Adjusted operating margin at the Human Health segment was
21.9%, down 100 basis points year over year. Adjusted operating
margin at the Environmental Health segment was 18.5%, down 30 bps
from the year-ago quarter.
Cash and cash equivalents amounted to $171.4 million as of
December 30, 2012, up 20.4% year over year. Long-term debt,
excluding minor short-term borrowings, was $938.8 million,
marginally lower on a year-over-year basis.
The company forecasts adjusted earnings per share for 2013 in
the range of $2.24 to $2.32. Reported earnings per share from
continuing operations are forecast in the range of $1.57 to
$1.65. Organic revenue is expected to increase in the mid-single
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
The company continues to execute well across several 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
) 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 higher-growth, higher-margin company vis-à-vis its
The stock carries a Zacks Rank #2 (Buy) rating.
Mettler-Toledo International Inc.
Measurement Specialties Inc.
) carry Zacks Rank #2 (Buy) ratings. Both stocks are expected to
MEASUREMNT SPCL (MEAS): Free Stock Analysis
METTLER-TOLEDO (MTD): Free Stock Analysis
PERKINELMER INC (PKI): Free Stock Analysis
THERMO FISHER (TMO): Free Stock Analysis
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