PerkinElmer, Inc. (NYSE:PKI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After the upgrade, the ten analysts covering PerkinElmer are now predicting revenues of US$4.3b in 2021. If met, this would reflect a substantial 34% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$3.6b in 2021. It looks like there's been a clear increase in optimism around PerkinElmer, given the great increase in revenue forecasts.
See our latest analysis for PerkinElmer
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PerkinElmer's past performance and to peers in the same industry. It's clear from the latest estimates that PerkinElmer's rate of growth is expected to accelerate meaningfully, with the forecast 34% revenue growth noticeably faster than its historical growth of 9.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect PerkinElmer to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for PerkinElmer next year. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at PerkinElmer.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential warning sign with PerkinElmer, including a weak balance sheet. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.
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