PerkinElmer, Inc. PKI reported third-quarter 2019 adjusted earnings per share (EPS) of $1.06, which beat the Zacks Consensus Estimate of $1.01 per share by 4.9%. Moreover, the bottom line improved 17.8% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $706.9 million, up 4.8% from the year-ago quarter and improved 5% organically. Adjusted revenues in the reported quarter came in at $707.1 million, up 4.8% year over year. However, the top line lagged the Zacks Consensus Estimate of $$722.5 million by 2.2%.
At this segment, revenues totaled $426.9 million, reflecting an improvement of 5.1% from the year-ago quarter. Organically, the segment grew 4% in the quarter under review. Per management, the third-quarter performance was affected by soft performance in applied markets. However, solid show by life sciences contributed to organic revenues.
Coming to profits at the DAS segment, the company reported third-quarter 2019 adjusted operating income of $86.2 million, up 26.8% from the year-ago quarter.
Revenues at this segment amounted to $280 million, up 4.4% on a year-over-year basis. Adjusted revenues in the segment totaled $280.2 million, up 4.4% from the prior-year quarter. Organically, the segment improved 6% in the third quarter. Per management, the upside can be attributed to strength across reproductive health and immunodiagnostics business lines.
Adjusted operating income in the segment totaled $79.7 million, up 4.6% from the year-ago quarter.
Per management, the major geographies witnessed a mixed third quarter, with low-single digit organic revenue growth in the United States and mid-single digit organic revenue growth in Asia Pacific (APAC) and Europe.
PerkinElmer, Inc. Price, Consensus and EPS Surprise
PerkinElmer, Inc. price-consensus-eps-surprise-chart | PerkinElmer, Inc. Quote
Gross profit in the quarter came in at $342.3 million, up 3% year over year. Adjusted gross margin, as a percentage of revenues, was 51.7%, up 70 bps year over year.
Adjusted operating income was $152.5 million, up 18.6% year over year.
Adjusted operating margin, as a percentage of revenues, was 21.6% in the quarter, up 250 bps.
In the third quarter, cash and cash equivalents came in at $392.9 million, which increased a whopping 161.9% sequentially.
During the reported quarter, net cash provided by operating activities came in at $106.7 million, up 14.5% from the year-ago quarter.
2019 Guidance Raised
PerkinElmer now expects 2019 adjusted EPS of $4.07.
The company announced the buyout of Meizheng Group – a leading food safety testing company in China. The buyout is likely to strengthen PerkinElmer’s food safety abilities in attractive markets, which includes pathogen, toxin and drug residue testing. Further, the acquisition is likely to bolster PerkinElmer’s assay capabilities.
PerkinElmer exited the third quarter on a mixed note, with EPS surpassing the consensus mark, while revenues missing the same. The company witnessed strong performances by its core Discover & Analytics Solutions and Diagnostics units in the quarter under review. Strength in reproductive health and immunodiagnostics business lines led to the impressive performance. Modest growth in international markets is also encouraging.
Further, expansion in operating margins buoys optimism. Solid show by Tulip and EUROIMMUN also paints a bright picture.
However, negative currency movements impacted the company’s top line in the quarter under review. Furthermore, PerkinElmer continues to make acquisitions, which increases integration risks.
Currently, PerkinElmer carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks which reported solid results this earning season are Edwards Lifesciences EW, Thermo Fisher Scientific Inc. TMO and ResMed Inc. RMD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Edwards Lifesciences delivered third-quarter 2019 adjusted EPS of $1.41, outpacing the Zacks Consensus Estimate by 15.6%. Third-quarter net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%.
Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $6.27 billion outpaced the Zacks Consensus Estimate by 1.3%.
ResMed reported third-quarter 2019 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Download Free Report Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
PerkinElmer, Inc. (PKI) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
ResMed Inc. (RMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research