PerkinElmer Announces Financial Results for the Third Quarter of 2011
PerkinElmer reported after the close of the market on Thursday that revenues in the third quarter rose 8 percent year over year, but it missed analyst estimates on the top line.
Total revenues in the quarter ended Oct. 2 rose to $453.7 million, compared to $419.1 million a year ago but fell short of Wall Street estimates of $469.6 million. On an organic basis, revenues were up 4 percent year over year.
The firm has made a number of purchases throughout 2011 and in the quarter those acquisitions contributed more than $20 million to the top line, CFO Frank Wilson said on a conference call after the release of the company's earnings results.
The Human Health segment grew revenues to $207.4 million, up 7 percent from $194.5 million a year ago, while Environmental Health climbed to $246.3 million, a 10 percent increase from $224.6 million a year ago.
On the conference call, Chairman and CEO Robert Friel said that during the quarter, growth was seen across all major geographies and most end markets.
The Waltham, Mass.-based company grew sales in Europe in the low-single digits. While 30 percent of the company's business is tied to Europe, Friel said that much of that is in end markets that will not be significantly impacted by the challenging macroeconomic environment there. Only about 5 percent of total revenues is tied directly to government spending that could be exposed to austerity measures in Europe, he said.
The US grew in the mid-single digits, and while macro conditions will be challenging, he said that the company is seeing improving birth rates, which could benefit its newborn screening business, and continued demand for environmental and safety products.
The US academic/government end market represents about 10 percent of revenues, with a large portion of PerkinElmer's exposure in that market in the newborn screening space, which is primarily state funded. Friel said that as long as he's been with the company, he has never seen a decline in funding for newborn screening from states, and in the third quarter, PerkinElmer's newborn screening business grew.
In developing geographies, business rose in the double-digits, and PerkinElmer expects that to continue, Friel said
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