PerkinElmer Delivers Solid Fourth-Quarter Results, but Short-Term Headwinds Impact 2023 Guidance

Narrow-moat PerkinElmer reported fourth-quarter results that slightly exceeded expectations, but its guidance looks weak for 2023, as demand from pandemic-related products will dissipate in a more endemic situation. We have made slight adjustments to our projections to account for a complete removal of COVID-19-related sales and slowing demand affecting 2023 guidance, but we are maintaining our $162 fair value estimate. Shares still appear undervalued, and investors should note that PerkinElmer is on track to fully divest its analytical and enterprise business in the near future.