PerkinElmer (PKI) Up 1.9% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for PerkinElmer (PKI). Shares have added about 1.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is PerkinElmer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

PerkinElmer Q1 Earnings and Revenues Surpass Estimates

PerkinElmer, Inc. reported first-quarter 2021 adjusted earnings per share of $3.72, which beat the Zacks Consensus Estimate of $3.03 per share by 22.8%. Moreover, the bottom line witnessed significant improvement compared with the year-ago quarter.

Revenue Details

Based in Waltham, MA, this leading MedTech company reported revenues of $1.31 billion, up 100.4% from the year-ago quarter and 92% organically. Adjusted revenues in the reported quarter were $1.31 billion, up 100.6% year over year. The top line also surpassed the Zacks Consensus Estimate by 13.7%.

Segment Details

Discover & Analytics Solutions

At this segment, revenues were $455 million, reflecting a rise of 14.3% from the year-ago quarter. Organically, the segment saw an increase of 6% in the quarter under review. Per management, broad-based growth across life sciences, food and applied markets contributed to the upside.

Coming to profits at the DAS segment, the company reported first-quarter 2021 adjusted operating income of $76 million, up 40.7% from the year-ago quarter.

Diagnostics segment

Revenues at this segment amounted to $853 million, up 235.8% on a year-over-year basis. Organically, the segment soared 227% in the first quarter.
Per management, strength in immunodiagnostics and applied genomics business drove the upside, with reproductive health business line returning to growth for the first time since fourth-quarter 2019.

Adjusted operating income in the segment totaled $483 million, compared with $59 million in the year-ago quarter.

Geographical Details

Per management, the major geographies witnessed a solid first quarter with Europe and the United States exhibiting triple-digit growth, while Asia Pacific recorded strong double-digit growth. China saw year-over-year improvement in the quarter under review.

Margin Analysis

Adjusted gross profit in the quarter amounted to $809.7 million, up 148.9% year over year. Adjusted gross margin, as a percentage of revenues was 61.9%, up 1200 basis points (bps) year over year.

Adjusted operating income was $541.8 million, which skyrocketed 443.9% from the year-ago quarter. Adjusted operating margin, as a percentage of revenues was 41.4%, up 2610 bps.

Financial Update

The company exited the first quarter with cash and cash equivalents of $988.2 million, compared with $402 million in the prior quarter.

During the reported quarter, net cash provided by operating activities amounted to $473.5 million, compared with $60.1 million in the year-ago period.

2021 Guidance

PerkinElmer has provided guidance for second-quarter 2021 and raised full-year 2021 outlook.

For second-quarter 2021, the company projects adjusted earnings per share of at least $2.35. The Zacks Consensus Estimate is pegged at $2.36 per share. For the same period, revenues are projected to be around $1.11 billion. The Zacks Consensus Estimate for the same stands at $1.05 billion.

For 2021, the company expects adjusted earnings per share to be $9.40 (up from the previous estimate of at least $8.50). The Zacks Consensus Estimate is pegged at $8.60 per share.

Revenues are anticipated to be $4.37 billion (up from the prior estimate of at least $4.08 billion).

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, PerkinElmer has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

PerkinElmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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