PerkinElmer Shares Popped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of safety and environment services provider PerkinElmer (NYS: PKI) climbed as much as 11% Friday after its quarterly results and full-year outlook topped Wall Street expectations.

So what: PerkinElmer's huge fourth-quarter beat -- adjusted EPS of $0.65 versus the consensus of $0.51 -- suggests that its Caliper acquisition is paying off much faster than expected. In fact, adjusted gross and operating margins grew 300 basis points and 200 basis points, respectively, giving investors plenty of optimism about the company's long-term profitability.

Now what: Looking ahead, PerkinElmer now sees 2012 adjusted EPS of $1.98-$2.04, which also topped Wall Street's estimate of $1.92. "The progress we made in 2011, both operationally and strategically, better positions us to make a dramatic impact on human and environmental health while continuing to deliver strong financial return," said CEO Robert Friel. Unfortunately, with the stock now up about 40% over just the past two months and flirting with its 52-week highs, Mr. Market might have already baked that optimism into the price. 

Interested in more info onPerkinElmer?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners