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Post Earnings Coverage as PerkinElmer Q3 Bottomline Outperformed Estimates

Upcoming AWS Coverage on Quintiles IMS Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 15, 2016 / Active Wall St. announces its post-earnings coverage on PerkinElmer Inc. (NYSE: PKI). The company reported its financial results for the third quarter fiscal 2016 (Q3 FY16) on November 07, 2016. The Waltham, Massachusetts-based company's GAAP gross margin and adjusted gross margin expanded 240 and 170 basis points, respectively. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of PerkinElmer's competitors within the Medical Laboratories & Research space, Quintiles IMS Holdings, Inc. (NYSE: Q), reported ON November 02, 2016, financial results for the quarter ended September 30, 2016 for Quintiles Transnational Holdings, Inc. on a standalone basis. AWS will be initiating a research report on Quintiles IMS in the coming days.

Today, AWS is promoting its earnings coverage on PKI; touching on Q. Get our free coverage by signing up to:



Earnings Reviewed

For the three months ended on October 02, 2016, PerkinElmer reported revenues of $548.05 million which came in below $563.44 million recorded at the end of Q3 FY15. Total revenues for the reported quarter also fell short of market expectations of $572 million. The company recorded a negative organic growth of 2% during Q3 FY16. Furthermore, adjusted revenue for the reported quarter came in at $548.23 million compared to $563.60 million in Q3 FY15.

The healthcare instruments company reported Q3 FY16 GAAP net income from continuing operations of $57.75 million, or $0.52 per diluted share, compared to $54.90 million, or $0.48 per diluted share, in Q3 FY15. The company's adjusted earnings for Q3 FY16 came in at $0.68 per diluted share, which was above $0.60 per diluted share reported in the prior year's period and market earnings estimates of $0.66 per diluted share.

Operating Metrics

In Q3 FY16, the company posted GAAP operating income from continuing operations of $81.23 million compared to $75.90 million in past year period. Operating profit margin for Q3 FY16 was 14.8% of revenue versus 13.5% of revenue in the year ago quarter.

Adjusted operating income for Q3 FY16 stood at $103.88 million as compared to $95.73 million in the previous year's same period. Furthermore, adjusted operating profit margin for Q3 FY16 was 18.9% of adjusted revenue compared to 17.0% of adjusted revenue in Q3 FY15.

Segment Performance

During Q3 FY16, Human Health segment revenue came in at $338.24 million, down 2% from $343.63 million in the year ago period. During the quarter, organic revenue growth was flat, impacted by the extra week in the comparable prior period. The segment reported Q3 FY16 operating income of $64.56 million compared to $63.15 million in Q3 FY15. However, Human Health segment operating profit margins rose to 19.1% of segment revenue in Q3 FY15 from 18.4% of segment revenues in Q3 FY15.

PerkinElmer's Environmental Health segment revenues were $209.81 million in Q3 FY16, which was 5% less than last year's recorded revenues of $219.80 million. During the quarter, the segment's organic revenue declined 5% due to softer capital equipment end markets. The segment reported operating income of $27.66 million versus $22.84 million in Q3 FY15. Additionally, operating profit margin improved to 13.2% of segment revenue in Q3 FY16 from 10.4% of segment revenues inn Q3 FY15.

Cash Flow & Balance Sheet

In the reported quarter, PerkinElmer generated $73.24 million in cash from operations of continuing operations compared to $60.77 million in the year ago quarter. The company had cash and cash equivalents balance of $311.66 million as on October 02, 2016, compared to $237.93 million at the close of books on January 03, 2016. Furthermore, the company ended the quarter with long-term debt of $1.13 billion compared to $1.01 billion as on January 03, 2016.


In a separate press release on October 26, 2016, PerkinElmer's Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable on February 10, 2017, to shareholders of record at the close of business on January 20, 2017.


For full FY16, PerkinElmer narrowed its previous guidance of GAAP earnings per share from continuing operations to a new range of $2.24 to $2.26. Furthermore, on a non-GAAP basis (expected to include certain adjustments), adjusted earnings is projected to be $2.75 per share to $2.77 per share.

Stock Performance

At the close of trading session on November 14, 2016, PerkinElmer's stock price slipped 1.24% to end the day at $50.27. A total volume of 976.01 thousand shares were exchanged during the session, which was above the 3-month average volume of 604.54 thousand shares. The stock currently has a market cap of $5.45 billion and is trading at a PE ratio of 23.73.

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SOURCE: Active Wall Street