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PerkinElmer Q2 Revenues Miss Wall Street Estimate, Rise 3 Percent

NEW YORK – PerkinElmer said after the close of the market on Monday that its total revenues in the second quarter grew 3 percent year over year but missed the consensus Wall Street estimate.

For the three months ended June 30, the Waltham, Massachusetts-based firm posted $722.5 million in revenues compared to $703.4 million in Q2 2018. The analysts' average estimate was $729.8 million.

Organically, revenues grew 5 percent year over year, PerkinElmer said.  

By segment, diagnostics revenues were up 6 percent to $288.6 million from $272.7 million a year ago. Organic revenue growth was 9 percent, the firm said. Discovery and analytical solutions revenues were up a fraction of 1 percent to $434.0 million from $430.3 million, with organic growth of 2 percent.

In diagnostics, Euroimmune was up about 17 percent on an organic basis during the quarter, delivering the strongest top-line growth since PerkinElmer acquired that business two years ago, PerkinElmer Chairman and CEO Robert Friel said on a conference call.

He added that the firm continues to see "compelling clinical data" around the Vanadis NIPT system, as well as "very positive" feedback from early adopters. PerkinElmer CFO Jamey Mock added on the call that the firm has 15 installations of Vanadis, putting it on track to meet its prior stated goal of 30 systems by the end of 2019.

Reproductive health was up in the high single digits organically, driven by the company's genomic testing business, while immunodiagnostics saw growth across all product lines and was up in the mid-teens. The firm is especially excited about the SuperFlex system, a chemiluminescent launched this year by PerkinElmer in China and targeted to the point-of-care market in cardiovascular diseases, infectious diseases, and gynecology testing, Mock said.

Applied genomics grew in the mid-single digits, he said, while Cisbio Bioassays, acquired in Q1 2019, delivered high-teen growth, Friel said.

For the second half of 2019, the diagnostics segment is expected to continue growing in the high single digits, Mock added.

The company's R&D costs increased 2 percent year over year to $48.3 million from $47.2 million, while its SG&A spending was trimmed 2 percent to $201.6 million from $204.9 million.

PerkinElmer's profit for the recently completed quarter was $69.1 million, or $.62 per share, compared to $64.1 million, or $.57 per share, a year ago. Adjusted EPS for Q2 2019 was $1.00 and matched the consensus Wall Street estimate.

The company finished the quarter with $150.0 million in cash and cash equivalents.

PerkinElmer initiated third quarter guidance, saying revenues are expected to be $724 million, which would represent 6 percent to 7 percent organic revenue growth. Adjusted EPS is expected to be $1.01.

For full-year 2019, PerkinElmer said that EPS from continuing operations is now expected to be in the range of $2.61 to $2.66. In April, it forecast EPS from continuing operations of between $2.85 and $2.90.

Full-year Non-GAAP EPS was unchanged and continues to be projected to be between $4.02 and $4.07.