Morningstar | PerkinElmer's First-Quarter Results Broadly Met Our Expectations; Shares Remain Overvalued
PerkinElmer's fourth-quarter performance mostly tracked our expectations. We do not anticipate any major changes to our fair value estimate after we update our assumptions, and we are leaving our no-moat rating intact. Management slightly lifted its adjusted 2019 EPS guidance range to $4.02-$4.07 (up from $4.00-$4.05) and encompasses our previously forecast $4.02. We view the outlook as realistic as we continue to think the company will benefit from new Cisbio opportunities and broad endmarket strength. Separately, we think PerkinElmer's shift toward a more unified organizational structure will ultimately be fruitful for the company.We expect the company's diagnostic segment will continue to show robust growth. The segment saw quarterly 9% organic revenue growth versus the year-ago period, driven by reproductive health, applied genomics and immunodiagnostics activity. We think the segment should continue to benefit from the company's genomics testing focus. Furthermore, we remain encouraged by the company's Euroimmun business, which should continue to grow in the U.S. market.
PerkinElmer's discovery and analytical solutions continued to grow organically. The segment posted 2% organic revenue growth compared with the year-ago period thanks to healthy pharmaceutical and biotechnology end markets. Separately, we think the company's Cisbio acquisition should bolster the segment as we expect it will help expand the company's emerging market presence in the drug discovery business.
PerkinElmer is a provider of products, services and solutions for the diagnostics, life sciences and applied markets. The company operates in the following segments: Discovery and Analytical Solutions and Diagnostics. The company's Discovery and Analytical Solutions segment serves the life sciences and applied markets. The life sciences market consists of the life sciences research market and laboratory services market whereas the applied markets consist of environmental, food and industrial markets. In its Diagnostics segments, the company provides instruments, reagents, assay platforms, and software to hospitals, medical labs, clinicians, and medical research personnel to help improve the health of families.
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