Key Factors To Influence PerkinElmer's (PKI) Q4 Earnings
Zacks Investment Research | Jan 18, 2018 03:40AM ET
PerkinElmer, Inc. (NYSE:PKI) is expected to release fourth-quarter 2017 results on Jan 25, after the market closes. In the last quarter, the company registered adjusted earnings of 73 cents per share, which beat the Zacks Consensus Estimate of 72 cents. Further, adjusted revenues of approximately $554 million also beat the Zacks Consensus Estimate of $552 million.
Solid performances in the Discovery and Analytical Solutions unit as well as Diagnostics segment will drive PerkinElmer’s top line in the fourth quarter. In fact, the Zacks Consensus Estimate for Discovery and Analytical Solutions revenues is currently pegged at $437 million. This reflects an improvement of 13.5% from the third quarter. Further, the Zacks Consensus Estimate for the Diagnostics segment revenues is pegged at $180 million, up 6.5% from the last quarter.
PerkinElmer, Inc. Price and Consensus
industry over the last year. The stock has gained 52% surpassing the industry’s rally of 47.7%.
Let’s take a look at how things are shaping up prior to the fourth-quarter earnings announcement.
Factors to Consider
View Upbeat: The Zacks Consensus Estimate for PerkinElmer’s fourth-quarter earnings is at 94 cents per share, reflecting year-over-year growth of 13.3%. For revenues, the consensus estimate is pegged at $615.8 million, up 8.7% year over year.
Earlier, management confirmed that the company has been progressing favorably per the original guidance cited in the beginning of fiscal 2017. Expecting a better-than-expected financial result for the fourth quarter, the company revised its guidance of adjusted earnings per share for the full year.
In this regard, PerkinElmer now expects full-year adjusted earnings per share in the band of $2.80-$2.90, compared with the previous range of $2.75-$2.85. Further, post the first-quarter earnings, the company raised its revenue guidance as well.
Favorable Market Trends: PerkinElmer continues to witness favorable market conditions. For the first time in more than five years, the company experienced positive organic growth in every region of the world and end market in which it operates in the last quarter. We expect the company to maintain this momentum in the quarter to be reported. Looking specifically at the end markets, pharma biotech and diagnostics are expected to see strong sales in the fourth quarter.
Get The News You Want
Acquisition to Drive Growth: Acquisitions and strategic partnerships have proved to be key growth catalysts for PerkinElmer. Recently, the company completed its previously announced acquisition of EUROIMMUN Medical Laboratory Diagnostics AG. Through this acquisition, EUROIMMUN expanded PerkinElmer’s reach in the autoimmune and allergy diagnostic markets. It also fortified the company’s foothold in curing new infectious diseases. The management is optimistic about acquisition-driven growth in fiscal 2018.
Solid Product Portfolio: PerkinElmer delivers a comprehensive suite of scientific informatics and software solutions to aggregate data into actionable insights in an automated and scalable way. The company launched its new mass spectrometry platform, QSight Triple Quad LC/MS/MS for the clinical market in the last quarter. While QSight has already received a very positive response in the niche space, this is expected to provide PerkinElmer a competitive edge in the MedTech space in the fourth quarter.
The company’s products include the industry leading ChemDraw software, Electronic Lab Notebooks including cloud-based Elements SaaS Offering and enterprise E-Notebook Solutions, along with the TIBCO Spotfire platform for scientific data analytics.
PerkinElmer’s expanding portfolio is helping the company win market share worldwide.
Thus, PerkinElmer is confident of improving growth trajectory in the fourth quarter.
Our quantitative model conclusively shows an earnings beat for PerkinElmer this quarter.This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates.
Zacks ESP: Earnings ESP for PerkinElmer is +0.21%. The Most Accurate estimate is $0.94, which is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter .
Zacks Rank: PerkinElmer carries a Zacks Rank #2. A favorable Zacks Rank increases the predictive power of ESP and the company’s positive ESP makes surprise prediction feasible.
Stocks Worth a Look
Here are a few similar medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Bio-Rad Laboratories, Inc. (NYSE:BIO) has an Earnings ESP of +4.45% and a Zacks Rank #1. You can see .
BIOVERATIV Inc. (NASDAQ:BIVV) has an Earnings ESP of +2.56% and a Zacks Rank #1.
Baxter International Inc. (NYSE:BAX) has an Earnings ESP of +1.52% and a Zacks Rank #3.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp (NYSE:FMC). and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.