PerkinElmer Earnings: Here’s Why Investors are Not Happy Now

PerkinElmer Inc. (NYSE:PKI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 14.13%.

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PerkinElmer Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 16.28% to $0.36 in the quarter versus EPS of $0.43 in the year-earlier quarter.

Revenue: Decreased 1.08% to $505.38 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: PerkinElmer Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.48. It missed the average revenue estimate of $532.25 million.

Quoting Management: “The majority of the business delivered solid growth in the quarter despite challenging global economic conditions. However a portion of our portfolio experienced more significant headwinds specifically in Europe and Japan,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “As a result, we are adjusting our sales forecast while maintaining the appropriate balance between prudent cost management and our growth and productivity investments.”

Key Stats (on next page)…

Revenue decreased 11.79% from $572.92 million in the previous quarter. EPS decreased 44.62% from $0.65 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.56 and has not changed. For the current year, the average estimate has moved down from a profit of $2.32 to a profit of $2.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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