PerkinElmer, Inc. (PKI) has reported a 4.99 percent fall in profit for the quarter ended Jan. 01, 2017. The company has earned $64.85 million, or $0.59 a share in the quarter, compared with $68.25 million, or $0.61 a share for the same period last year. On an adjusted basis, earnings per share were at $0.83 for the quarter compared with $0.81 in the same period last year.
Revenue during the quarter went down marginally by 0.55 percent to $566.77 million from $569.90 million in the previous year period. Gross margin for the quarter expanded 175 basis points over the previous year period to 48.73 percent. Total expenses were 85.81 percent of quarterly revenues, down from 86.45 percent for the same period last year. This has led to an improvement of 64 basis points in operating margin to 14.19 percent.
Operating income for the quarter was $80.44 million, compared with $77.22 million in the previous year period.
However, the adjusted operating income for the quarter stood at $120.60 million compared to $118.10 million in the prior year period. At the same time, adjusted operating margin improved 56 basis points in the quarter to 21.28 percent from 20.72 percent in the last year period.
"As we exit 2016, I am pleased with our performance in delivering strong margin expansion and cash flow growth while making significant progress against our strategic priorities," said Robert Friel, chairman and chief executive officer of PerkinElmer. "We have undertaken substantial steps to strengthen our organization, accelerate our operational capabilities and increase our focus on innovation, that better position us to improve revenue growth and increase profitability."
For financial year 2017, PerkinElmer, Inc. projects diluted earnings per share to be in the range of $2.06 to $2.16. The company projects diluted earnings per share to be in the range of $2.75 to $2.85 on adjusted basis.
Operating cash flow improves
PerkinElmer, Inc. has generated cash of $350.62 million from operating activities during the year, up 22.12 percent or $63.52 million, when compared with the last year.
Cash flow from investing activities was almost stable for the quarter at $100.84 million, when compared with the previous year period.
The company has spent $115.01 million cash to carry out financing activities during the year as against cash outgo of $107.14 million in the last year period.
Cash and cash equivalents stood at $359.26 million as on Jan. 01, 2017, up 50.99 percent or $121.33 million from $237.93 million on Jan. 03, 2016.
Working capital increases
PerkinElmer, Inc. has recorded an increase in the working capital over the last year. It stood at $586.58 million as at Jan. 01, 2017, up 24.36 percent or $114.90 million from $471.68 million on Jan. 03, 2016. Current ratio was at 1.97 as on Jan. 01, 2017, up from 1.84 on Jan. 03, 2016.
Cash conversion cycle (CCC) has decreased to 47 days for the quarter from 51 days for the last year period. Days sales outstanding went up to 34 days for the quarter compared with 33 days for the same period last year.
Days inventory outstanding was almost stable at 39 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 26 days for the quarter from 21 for the same period last year.
Debt moves up marginally
PerkinElmer, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,046.43 million as on Jan. 01, 2017, up 3.31 percent or $33.54 million from $1,012.88 million on Jan. 03, 2016. Total debt was 24.47 percent of total assets as on Jan. 01, 2017, compared with 24.31 percent on Jan. 03, 2016. Debt to equity ratio was almost stable at 0.49 as on Jan. 01, 2017, when compared with the last year. Interest coverage ratio deteriorated to 7.48 for the quarter from 8.19 for the same period last year.
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