By Bill Berkrot
Oct 30 Scientific instruments maker PerkinElmer
Inc narrowed its full-year earnings forecast range on
Wednesday, lowering the top end by 3 cents, as it takes a
cautious view on business for the rest of the year.
The company also reported slightly higher-than-expected
third-quarter profit and revenue.
PerkinElmer said it now expects adjusted 2013 earnings of
$2.04 to $2.07 per share, tightening its prior view of $2.03 to
$2.10 per share.
"As we looked at Q4 we just thought with some of the
uncertainty out there it was prudent to be conservative," Chief
Executive Robert Friel said of the updated forecast in a
telephone interview. "We can still get operating margin
expansion and decent EPS growth."
Friel said significant currency devaluation in Southeast
Asia and India that makes the cost of PerkinElmer products more
expensive in local currency has taken something of a toll.
"In those countries we've seen a little bit of a
deceleration of the growth and emerging markets have been a real
strength for us, so that's a little bit concerning to us," Friel
said. "That's why we're guiding a little bit lower from a
revenue perspective in Q4."
The recent U.S. government shutdown could also affect
fourth-quarter results even though PerkinElmer does not have
much exposure to government business.
"Some of our highly sensitive instruments when they're
shipped overseas require the issuance of government export
licenses and as a result of the shutdown the government is
working through some backlogs, so we're a little concerned that
the delay could have an impact of pushing out some of these from
Q4 into Q1," he explained.
PerkinElmer, which also sells medical diagnostic equipment
and environmental safety monitoring products, posted a net
profit from continuing operations of $40.3 million, or 36 cents
per share, compared with a profit of $29.6 million, or 25 cents
per share a year ago.
Excluding special items, the company had adjusted earnings
of 49 cents per share, exceeding analysts' average expectations
by a penny, according to Thomson Reuters I/B/E/S.
Revenue for the quarter rose 3 percent to $524.3 million,
slightly ahead of Wall Street estimates of $523.8 million.
Business in China and Brazil remained strong, and the
company is starting to see signs of renewed growth in developed
countries, Friel said.
"Europe for us was down just slightly, but there are some
indications that things seem to be potentially improving there
and we've seen some decent recovery in the Americas,
particularly in the U.S.," he said. "We're starting to see Japan
come back as well."
The Environmental Health business saw sales grow 4.3 percent
to $231.9 million for the quarter, while the Human Health unit
had revenue growth of 1.7 percent to $292.4 million.