Earnings Preview: PerkinElmer

Oct.23.08 | About: PerkinElmer, Inc. (PKI)

PerkinElmer (NYSE:PKI) is expected to report Q3 earnings with a conference call scheduled for 5:00 pm ET.

Guidance

Analysts are looking for a profit of 36c on revenue of $503.11M. The consensus range is 34c to 37c for EPS, and revenue of 488M to $516M, according to First Call. For Q2, the company reported EPS of 36c vs. consensus of 34c and revenue of $529M vs. consensus of $506M.

Analyst Views

Possible positive drivers for this quarter include growth in Life and Analytical Sciences and capacity expansion in Optoelectronics. Also, the Viacell acquisition should contribute to PerkinElmer's revenue.

Possible risks to this earnings period could include costs involved with recent acquisitions and a contraction of growth in its Asian end markets. In Late July, Leerink Swann noted that the firm continues to be bullish on genetic screening as a main top-line driver, especially since Biodiscovery is still a soft spot. The firm thinks the company is capable of generating long term earnings growth rate of 14%; however, it does see the stock as being fully valued and advises at current levels that it wouldn't chase shares. The firm Maintained its Market Perform rating.