PERKINELMER Reports Fourth Quarter FY2022 Earnings Results for December 31, 2022

Earnings Overview

PERKINELMER ($NYSE:PKI) announced their financial results for the fourth quarter of FY2022 on February 14, 2023. Revenue for the period ending December 31, 2022 was reported at USD 137.7 million, representing a 23.2% decline from the same period the previous year. Net income also decreased year-on-year by 45.7% to USD 741.2 million.

Transcripts Simplified

For the fourth quarter, the combined company generated total adjusted revenues of $1.09 billion, which was solidly above the high-end of our guidance. Life Science and Diagnostics business generated 8% non-COVID organic growth in the quarter, which was in line with our expectations. Adjusted operating margins were 27.3%.

Adjusted EPS was $1.70 and adjusted free cash flow was $112 million. The company paid down another $53 million of debt in the quarter, resulting in net leverage finishing at 2.7x at the end of the year.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Perkinelmer are shown below. More…

Market Price

On Tuesday, PERKINELMER reported its earnings results for the fourth quarter of fiscal year 2022 for the period ending December 31, 2022. The company opened the day at $141.5 and closed at $138.0, a decrease of 0.5% from its closing price of 138.7 on the previous day. This was the first quarterly earnings report for the company since its listing on the NASDAQ stock exchange in October 2022. This was driven primarily by higher sales volume and cost efficiencies.

Overall, PERKINELMER reported strong results for its fourth quarter of FY2022, with higher sales volume and cost efficiencies helping to drive increased profitability. Despite a slight dip in stock prices on Tuesday, resulting from the earnings report, PERKINELMER remains well-positioned for continued growth in FY2023. Live Quote…

Analysis

GoodWhale has conducted an in-depth analysis of PERKINELMER‘s fundamentals. Based on our Risk Rating system, PERKINELMER is a medium risk investment in terms of both financial and business aspects. That said, GoodWhale has detected 1 risk warnings in their balance sheet that investors should be aware of. To see the full report of our findings, please register for a free account on GoodWhale.com. Through our advanced proprietary analysis, we provide investors with up-to-date insights on their investments. More…

Peers

The company has a strong portfolio of products and services, which it uses to compete against its rivals, SenzaGen AB, Shanghai Rendu Biotechnology Co Ltd, and Charles River Laboratories International Inc. While all three companies are strong competitors, PerkinElmer Inc has the advantage of being a more diversified company, with a broader range of products and services. This gives the company a competitive edge in the market, and enables it to better meet the needs of its customers.

– SenzaGen AB ($SHSE:688193)

Shanghai Rendu Biotechnology Co Ltd is a Chinese biotechnology company with a market cap of 1.94B as of 2022. The company has a Return on Equity of 3.93%. Shanghai Rendu Biotechnology Co Ltd is engaged in the research, development, production and sale of diagnostic reagents, detection instruments and other products.

– Shanghai Rendu Biotechnology Co Ltd ($NYSE:CRL)

As of 2022, Charles River Laboratories International Inc. had a market cap of 10.63 billion and a return on equity of 13.86%. The company provides research tools and services to support the drug discovery and development process. Its services include preclinical services, such as target identification and validation, lead optimization, and IND-enabling studies; and manufactured products, including research models and reagents.

Summary

Investors were disappointed in the latest earnings report from PERKINELMER, released on February 14, 2023. Revenue for the fourth quarter of FY2022 declined 23.2% year-on-year to USD 137.7 million, while net income slumped 45.7% to USD 741.2 million. These results are likely to have a negative effect on share prices in the short-term and could cause investors to re-evaluate their long-term outlook on the company. It will be important to monitor PERKINELMER’s performance over the coming quarters in order to determine whether the recent earnings report was a blip or indicative of deeper issues.