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What: Shares of PerkinElmer (NYSE:PKI), a manufacturer of scientific, medical, and environmental testing and monitoring equipment, advanced as much as 11%, after reporting better-than-expected third-quarter earnings results.
So what: For the third-quarter, PerkinElmer reported a 13% increase in revenue, to $509.6 million, and profits of $0.45, which was in-line with what it reported last year. Relative to Wall Street's expectations, PerkinElmer beat by $0.01. Its double-digit revenue growth has to do with organic growth of 6%, and 24.5% sales growth in its human health division. Furthermore, PerkinElmer boosted its full-year forecast to a range of $2.05-$2.07 from its own previous guidance of $2.00-$2.05.
Now what: The words you want to hone in on in this report revolve around PerkinElmer's 6% organic growth. I like a company that can make accretive acquisitions, but it's much more impressive when a company can grow its existing business without turning to acquisitions. Prior to today's earnings report, PerkinElmer was well off my radar; however, I'm adding it to my Watchlist due to its impressive organic growth and slight EPS bump.
Craving more input? Start by adding PerkinElmer to your free and personalized Watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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