PerkinElmer Announces Divestiture of Applied Food and Enterprise Services; Increasing Our FVE

Narrow-moat PerkinElmer reported consistent second-quarter earnings and better-than-anticipated noncoronavirus revenue contributing to a higher outlook by management for the year. Although management's guidance is not far off from our projections, the announced divestiture of the analytical, food, and enterprise service businesses to New Mountain Capital will likely cause a mid-single-digit percentage change in our fair value estimate. The company will likely have higher revenue growth and better margins moving forward, which will be reflected in our new valuation.