NEW YORK (GenomeWeb) – PerkinElmer reported after the close of the market on Thursday that its first quarter revenues rose 3 percent year over year, thanks largely to an 8 percent revenue growth in its diagnostics business.
For the three months ended April 2, the company reported revenues of $514.1 million, up from $498.0 million a year earlier, and beating the average Wall Street analyst estimate of $506.8 million. Organic revenues increased 4 percent year over year.
Reported revenues in PerkinElmer's diagnostics segment rose 8 percent to $152.4 million in Q1 2017 from $141.6 million in Q1 2016. Revenues from the firm's discovery and analytical solutions business rose 1 percent to $361.8 million from $356.4 million.
"We are encouraged by our first quarter performance as we continue to see the benefits from our investments in new product innovations and better operational execution," PerkinElmer Chairman and CEO Robert Friel said in a statement. "We believe these efforts coupled with our leading positions in attractive market segments will allow us to deliver on our commitments in 2017 and beyond."
On a conference call with analysts following the release of the earnings, Friel said PerkinElmer is working to increase its penetration into the key markets of oncology, reproductive health, and infectious disease.
The company closed on its acquisition of Indian diagnostics firm Tulip, and the integration of that firm into PerkinElmer is "well underway," he noted, adding that the deal provides the firm with a strong portfolio, channel access, and a broad footprint. The company is also expanding its infectious disease diagnostics menu in China, including a new assay for hepatitis C surface antigens, and a PCR-based hepatitis C assay kit.
The firm is also looking to expand its newborn-screening business, especially in emerging markets. In India, Friel said, less than 5 percent of newborns are screened. PerkinElmer is increasing its screening pilot programs in that country and believes it has a large opportunity to further penetrate the market.
Friel also said the company is excited about its noninvasive prenatal testing development program, and is developing an automated assay to measure trisomies 13, 18, and 21. PerkinElmer plans to start beta testing its instrumentation with a small group of customers in the second half of this year, and expects to receive CE-IVD marking in the first half of 2018.
He further noted that the company is investing in its capabilities to develop and commercialize new products. PerkinElmer CFO Frank Wilson noted that the company expects to add $50 million in incremental revenues from new products to the top line in 2017.
Wilson also noted that emerging markets continue to be important to PerkinElmer's business. Organic revenues grew in the high teens in Asia this quarter and in the low-single digits in Europe. In the Americas, organic revenues declined in the low-single digits.
The firm's Q1 net income fell to $38.6 million, or $.35 per share, from $47.5 million, or $.43 per share, a year earlier. On an adjusted basis, PerkinElmer reported EPS of $.55, beating the average analysts' estimate of $.54.
For Q1, PerkinElmer's R&D expenses rose 11 percent to $33.3 million from $30.0 million in Q1 2016. Its SG&A costs for the quarter rose slightly to $145.1 million from $144.5 million in the year-ago period.
PerkinElmer ended the quarter with $288.3 million in cash and cash equivalents.
For full-year 2017, the company raised its adjusted EPS range to a new range of $2.80 to $2.90. PerkinElmer had previously guided for adjusted EPS of between $2.75 and $2.85. Analysts expect EPS of $2.82 for the year.
For the second quarter, Wilson said the company expects adjusted EPS of $.66 to $.68. Analysts are expecting Q2 EPS of $.67.
PerkinElmer's shares rose nearly 2 percent to $61.51 in Friday morning trading on the New York Stock Exchange.