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PerkinElmer, Inc. (PKI) reported fourth-quarter 2021 adjusted earnings per share (EPS) of $2.56, which beat the Zacks Consensus Estimate of $2.15 per share by 19.1%. The bottom line, however, declined 35.4% from the year-ago quarter.

In full-year 2021 the company reported adjusted EPS of $11.36, up 36.9% from the previous year. The figure outpaced the consensus mark by 3.6%.

GAAP EPS in the quarter was $1.41 compared with the year-ago quarter’s figure of $3.38.

Revenue Details

Based in Waltham, MA, this leading MedTech company reported revenues of $1.36 billion, up 1% from the year-ago quarter but down 9% organically. The top line surpassed the Zacks Consensus Estimate by 9.5%.

In full-year 2021, the company reported revenues of $5.07 billion, up 33.9% from the previous year. The figure beat the consensus mark by 3%.

Segment Details

At this segment, revenues were $655 million, reflecting a rise of 30% from the year-ago quarter. Organically, the segment witnessed an increase of 9%.

Coming to profits at the DAS segment, the company reported fourth-quarter 2021 adjusted operating income of $144 million, up 56.5% from the year-ago quarter.

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Diagnostics segment

Revenues at this segment amounted to $709 million, down 17% on a year-over-year basis. Organically, the segment decreased 20% in the fourth quarter.

Adjusted operating income in the segment totaled $335 million, down 33.3% from the year-ago quarter.

Margin Analysis

Adjusted gross profit in the quarter amounted to $811.6 million, down 4.9% year over year. Adjusted gross margin, as a percentage of revenues, was 59.5%, down 340 basis points (bps) year over year.

Selling, general and administrative expenses were $355.2 million, up 35% on a year-over-year basis. Research and development expenses amounted to $80.3 million, up 41.4% from the year-ago quarter.

Adjusted operating income was $458.7 million, which declined 19.7% from the year-ago quarter. Adjusted operating margin, as a percentage of revenues, was 33.6%, down 860 bps.

Financial Update

The company exited the fourth quarter with cash and cash equivalents of $618.3 million compared with $487.4 million a year ago.

Cumulative net cash provided by operating activities in the fourth quarter totaled $1.41 billion compared with $892.2 million in the year-ago quarter.

2022 Guidance

PerkinElmer has provided guidance for first-quarter 2022 and full-year 2022.

For first-quarter 2022, the company projects adjusted EPS in the range of $2.05-$2.10. The Zacks Consensus Estimate is pegged at $1.46 per share. For the same period, revenues are anticipated to be in the band of $1.17-$1.19 billion. The Zacks Consensus Estimate for the same stands at $1.07 billion.

For 2022, the company expects adjusted EPS to be in the range of $6.80 to $7.00. The Zacks Consensus Estimate is pegged at $6.47 per share.

Revenues are anticipated between $4.42 billion and $4.50 billion. The consensus mark stands at $4.35 billion.

Conclusion

PerkinElmer exited the fourth quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark. The company witnessed solid performance at Discover & Analytics Solutions segment in the quarter under review.

Per management, the company is well-poised to execute both its short and long-term goals on the back of perseverance and team effort.

However, contraction in both gross and operating margins is a woe. Weakness in the Diagnostics segment is disappointing. Apart from this, PerkinElmer continues to make acquisitions, which increases integration risks.