Biotech Values

[DewDiligence]

AP weighs in on PKI (nothing especially insightful here)…

http://finance.yahoo.com/news/PerkinElmer-rises-4Q-results-apf-1977300390.html?x=0

›PerkinElmer Rises on 4Q Results and Outlook

3-Feb-2012 5:12 pm ET

NEW YORK (AP) -- Shares of PerkinElmer Inc. climbed Friday after the life sciences company posted strong results in the fourth quarter and forecast profit in 2012 greater than analysts had expected.

THE SPARK: The company reported its results after the market closed on Thursday. Excluding costs related to its purchase of Caliper Life Sciences and the defined benefit plan liabilities of divested businesses, PerkinElmer said it earned 62 cents per share. Its revenue grew 15 percent, to $540.2 million from $470 million. The company said its human health revenue rose 20 percent to $258.5 million and environmental health revenue grew 11 percent to $281.7 million.

Analysts expected a smaller profit of 51 cents per share on revenue of $537 million, according to estimates compiled by FactSet.

THE BIG PICTURE: The Waltham, Mass., company bought Caliper in November for about $600 million. Caliper Life Sciences Inc. makes technologies used for drug development.

Including charges related to the Caliper acquisition and the benefit plan expenses, PerkinElmer said it lost $84.6 million, or 75 cents per share. A year ago it reported a profit of $292.9 million, or $2.49 per share.

For 2012, PerkinElmer forecast an adjusted profit of $1.98 to $2.04 per share, and said organic revenue growth will be in the mid-single digits. It reported $1.92 billion in revenue in 2011.

Analysts were projecting a profit of $1.91 per share on average, and they estimated the company's total revenue would grow about 12 percent to $2.16 billion.

THE ANALYSIS: Robert W. Baird & Co. analyst Quintin Lai kept an "Outperform" rating on PerkinElmer shares and raised his price target to $31 per share from $27, noting the company is forecasting a larger-than-expected profit even though it believes many of its customers will be cautious with their spending in 2012.

"We think these reasonable expectations coupled with the integration of recent deals, like Caliper, make (earnings per share) guidance appear reasonable/conservative," he wrote.

SHARE ACTION: PerkinElmer stock rose $1.54, or 6.2 percent, to close at $26.23. The shares are up 50 percent since setting an annual low of $17.45 on Nov. 25.‹