PerkinElmer narrows 2013 forecast, cites Q4 uncertainty

Reuters

By Bill Berkrot

Oct 30 (Reuters) - Scientific instruments maker PerkinElmerInc narrowed its full-year earnings forecast range onWednesday, lowering the top end by 3 cents, as it takes acautious view on business for the rest of the year.

The company also reported slightly higher-than-expectedthird-quarter profit and revenue.

PerkinElmer said it now expects adjusted 2013 earnings of$2.04 to $2.07 per share, tightening its prior view of $2.03 to$2.10 per share.

"As we looked at Q4 we just thought with some of theuncertainty out there it was prudent to be conservative," ChiefExecutive Robert Friel said of the updated forecast in atelephone interview. "We can still get operating marginexpansion and decent EPS growth."

Friel said significant currency devaluation in SoutheastAsia and India that makes the cost of PerkinElmer products moreexpensive in local currency has taken something of a toll.

"In those countries we've seen a little bit of adeceleration of the growth and emerging markets have been a realstrength for us, so that's a little bit concerning to us," Frielsaid. "That's why we're guiding a little bit lower from arevenue perspective in Q4."

The recent U.S. government shutdown could also affectfourth-quarter results even though PerkinElmer does not havemuch exposure to government business.

"Some of our highly sensitive instruments when they'reshipped overseas require the issuance of government exportlicenses and as a result of the shutdown the government isworking through some backlogs, so we're a little concerned thatthe delay could have an impact of pushing out some of these fromQ4 into Q1," he explained.

PerkinElmer, which also sells medical diagnostic equipmentand environmental safety monitoring products, posted a netprofit from continuing operations of $40.3 million, or 36 centsper share, compared with a profit of $29.6 million, or 25 centsper share a year ago.

Excluding special items, the company had adjusted earningsof 49 cents per share, exceeding analysts' average expectationsby a penny, according to Thomson Reuters I/B/E/S.

Revenue for the quarter rose 3 percent to $524.3 million,slightly ahead of Wall Street estimates of $523.8 million.

Business in China and Brazil remained strong, and thecompany is starting to see signs of renewed growth in developedcountries, Friel said.

"Europe for us was down just slightly, but there are someindications that things seem to be potentially improving thereand we've seen some decent recovery in the Americas,particularly in the U.S.," he said. "We're starting to see Japancome back as well."

The Environmental Health business saw sales grow 4.3 percentto $231.9 million for the quarter, while the Human Health unithad revenue growth of 1.7 percent to $292.4 million.

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