Biotech Values

[DewDiligence]

PKI Reports 3Q11 Results, Boosts 2011 EPS Range

[3Q11 non-GAAP EPS of $0.41, +32% YoY, beat the company’s prior guidance of $0.37-39. Sales grew 8% YoY and “organic” sales (excluding acquisitions and currency effects) grew 4% YoY. Sales in the healthcare segment (46% of overall sales) grew 7% YoY (2% organic); sales in the environmental segment (54% of overall sales) grew 10% YoY (6% organic).

PKI tweaked the 2011 non-GAAP EPS guidance to $1.66-1.68 (from the prior range of $1.64-1.68), implying 4Q11 non-GAAP EPS of $0.46-0.50. PKI has not yet given guidance for 2012. At the current share price, the P/E based 2011 non-GAAP EPS is about 12x.

CALP, which PKI acquired in a deal that closes soon (#msg-66915400), reported a solid 3Q11 (http://finance.yahoo.com/news/Caliper-Life-Sciences-Reports-prnews-3862971393.html?x=0&.v=1 ).

All told, I consider PKI a good ‘GARP’ stock—you get modest growth at a reasonable price and strong exposure to The Global Demographic Tailwind (#msg-68686075).]

http://www.reuters.com/article/2011/11/03/perkinelmer-idUSN1E7A20U420111103

›Nov 3, 2011 5:24pm EDT
By Bill Berkrot

Nov 3 (Reuters) – Scientific instruments maker PerkinElmer Inc bucked a recent trend among rivals in the life sciences tools sector by raising the low end of its full-year earnings forecast on Thursday.

PerkinElmer said it expects adjusted earnings of $1.66 to $1.68 per share, excluding items, boosting the low end of its prior forecast range by 2 cents. It still expects 2011 revenue to increase in the mid-single digit range from 2010.

In recent months several companies in the space, including Thermo Fisher Scientific Inc , Life Technologies Corp , and Illumina Inc , have lowered or withdrawn full year earnings forecasts, citing diminished spending and budget uncertainty by government and academic clients.

"We're less dependent on the academic and government exposure," PerkinElmer Chief Executive Robert Friel said in a telephone interview.

"When you look at the end markets that we do have exposure to they have a tendency to hold up better in difficult economic times, such as the newborn screening. That's not really tied to economic conditions," Friel said.

PerkinElmer, which also makes environmental safety monitoring products and medical testing equipment, posted a net profit from continuing operations of $26.7 million, or 24 cents per share for the third quarter, compared with a profit of $26.5 million, or 22 cents per share, a year ago.

Excluding items, PerkinElmer earned 41 cents per share, exceeding analysts' average expectations by 2 cents, according to Thomson Reuters I/B/E/S.

"In the environmental safety area, we're continuing to see growth there because of increased government regulation driving spending," Friel said.

He also said growth in sales from the BRIC countries -- Brazil, Russia, India and China -- from which the company gets about 25 percent of its revenue, was holding up well [#msg-68686075]. "That's growing much better than the developed economies," Friel said.

Revenue from continuing operations rose 8 percent to $453.7 million, shy of Wall Street estimates of about $470 million.

The Human Health unit saw sales rise 7 percent to $207.4 million, while sales for the Environmental Health business rose 10 percent to $246.3 million.

The company said it was seeing significant contributions from recent acquisitions, and is on track to close the $600 million acquisition of Caliper Life Sciences Inc -- the largest deal in Friel's tenure as CEO -- in the next few weeks.

PerkinElmer shares, which rose 4.2 percent on Thursday to $20.63, are down about 27 percent since mid-May as they have been dragged down along with the life sciences sector.

"Hopefully people are starting to see the resiliency of the portfolio that we've built at PerkinElmer," Friel said.‹