NEW YORK ( TheStreet) -- PerkinElmer (NYSE: PKI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- PERKINELMER INC has improved earnings per share by 9.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PERKINELMER INC increased its bottom line by earning $1.15 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($1.68 versus $1.15).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 163.8% when compared to the same quarter one year prior, rising from $13.39 million to $35.32 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 15.5%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 212.97% to $47.80 million when compared to the same quarter last year. In addition, PERKINELMER INC has also vastly surpassed the industry average cash flow growth rate of -7.41%.
- The gross profit margin for PERKINELMER INC is rather high; currently it is at 52.40%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.80% trails the industry average.