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PerkinElmer (PKI) to Post Q3 Earnings: What's in the Cards?
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PerkinElmer, Inc. is slated to release third-quarter 2021 results on Nov 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 17.4%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 24.3%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $1 billion, suggesting growth of 4.2% from the year-ago reported figure. The consensus mark for earnings stands at $1.70 per share, indicating a decline of 18.7% from the prior-year quarter.
Diagnostics Revenues: A Key Catalyst
In the second quarter, with respect to business, Diagnostics, which represents 58% of total sales, surged 59% organically, with 40% organic growth in non-COVID products. The improvement can be attributed to strength in the company’s Immunodiagnostics business, courtesy of COVID and non-COVID sales with EUROIMMUN's non-COVID business continuing to rebound strongly. This trend is likely to have continued in the third quarter.
In September 2021, the company completed the buyout of BioLegend for a total consideration of approximately $5.25 billion. The latest acquisition, which is historically the largest for the company, is expected to further expand its life science business into high-growth areas like cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation and bioprocessing.
In August, PerkinElmer announced the launch of its MaxSignal Mycotoxin Automation Bundle. Using the new assays and automation of this bundle, food safety QA managers and lab teams at grain processors, feed mills, pet food companies and contract labs can accurately and efficiently process up to 180 samples in less than 90 minutes.
In July, the company introduced four new ready-to-use AlphaLISA KRAS kits that will aid cancer researchers to advance identification and optimization of therapeutic leads by decoding KRAS mutations present in 25% of tumors in a better way.
These developments are likely to have positively impacted the company’s Diagnostics segment in the third quarter. This, in turn, might get reflected in the company’s to-be-reported quarter’s results.
Other Factors to Note
The company’s Discovery product portfolio may have witnessed strong demand courtesy of sustained robust performance by life sciences.
Productivity initiatives, volume leverage and strict cost control measures are likely to have contributed to the company’s third-quarter gross and operating margins. New product introductions may have improved product mix and thereby gross margin.
However, PerkinElmer’s exposure to the international markets increases the risk of foreign exchange volatility. The fluctuations in currency exchange rates might have weighed on the company’s international sales in the to-be-reported quarter.
Here’s What the Quantitative Model Suggests
Our proven model predicts an earnings beat for PerkinElmer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: PerkinElmer has an Earnings ESP of +5.20%. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
Image: Bigstock
PerkinElmer (PKI) to Post Q3 Earnings: What's in the Cards?
PerkinElmer, Inc. is slated to release third-quarter 2021 results on Nov 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 17.4%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 24.3%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $1 billion, suggesting growth of 4.2% from the year-ago reported figure. The consensus mark for earnings stands at $1.70 per share, indicating a decline of 18.7% from the prior-year quarter.
Diagnostics Revenues: A Key Catalyst
In the second quarter, with respect to business, Diagnostics, which represents 58% of total sales, surged 59% organically, with 40% organic growth in non-COVID products. The improvement can be attributed to strength in the company’s Immunodiagnostics business, courtesy of COVID and non-COVID sales with EUROIMMUN's non-COVID business continuing to rebound strongly. This trend is likely to have continued in the third quarter.
In September 2021, the company completed the buyout of BioLegend for a total consideration of approximately $5.25 billion. The latest acquisition, which is historically the largest for the company, is expected to further expand its life science business into high-growth areas like cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation and bioprocessing.
PerkinElmer, Inc. Price and EPS Surprise
PerkinElmer, Inc. price-eps-surprise | PerkinElmer, Inc. Quote
In August, PerkinElmer announced the launch of its MaxSignal Mycotoxin Automation Bundle. Using the new assays and automation of this bundle, food safety QA managers and lab teams at grain processors, feed mills, pet food companies and contract labs can accurately and efficiently process up to 180 samples in less than 90 minutes.
In July, the company introduced four new ready-to-use AlphaLISA KRAS kits that will aid cancer researchers to advance identification and optimization of therapeutic leads by decoding KRAS mutations present in 25% of tumors in a better way.
These developments are likely to have positively impacted the company’s Diagnostics segment in the third quarter. This, in turn, might get reflected in the company’s to-be-reported quarter’s results.
Other Factors to Note
The company’s Discovery product portfolio may have witnessed strong demand courtesy of sustained robust performance by life sciences.
Productivity initiatives, volume leverage and strict cost control measures are likely to have contributed to the company’s third-quarter gross and operating margins. New product introductions may have improved product mix and thereby gross margin.
However, PerkinElmer’s exposure to the international markets increases the risk of foreign exchange volatility. The fluctuations in currency exchange rates might have weighed on the company’s international sales in the to-be-reported quarter.
Here’s What the Quantitative Model Suggests
Our proven model predicts an earnings beat for PerkinElmer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: PerkinElmer has an Earnings ESP of +5.20%. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
Insulet Corporation (PODD - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canopy Growth Corporation (CGC - Free Report) has an Earnings ESP of +26.83% and a Zacks Rank of 3.
Cardiovascular Systems, Inc. has an Earnings ESP of +24.59% and a Zacks Rank of 3.