Earnings Beat: PerkinElmer, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
As you might know, PerkinElmer, Inc. (NYSE:PKI) just kicked off its latest yearly results with some very strong numbers. PerkinElmer beat earnings, with revenues hitting US$3.8b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for PerkinElmer
Taking into account the latest results, the consensus forecast from PerkinElmer's eleven analysts is for revenues of US$4.20b in 2021, which would reflect a notable 11% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to increase 9.9% to US$7.14. In the lead-up to this report, the analysts had been modelling revenues of US$4.21b and earnings per share (EPS) of US$7.04 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$158, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic PerkinElmer analyst has a price target of US$185 per share, while the most pessimistic values it at US$99.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Next year brings more of the same, according to the analysts, with revenue forecast to grow 11%, in line with its 11% annual growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.4% next year. It's clear that while PerkinElmer's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$158, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on PerkinElmer. Long-term earnings power is much more important than next year's profits. We have forecasts for PerkinElmer going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with PerkinElmer (including 1 which is a bit unpleasant) .
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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