Search This Blog

Monday, January 27, 2020

PerkinElmer Q4 earnings down 10%; soft guidance pressures shares

PerkinElmer (NYSE:PKI) Q4 results:
Revenue: $805.5M (+6.5%); Discovery & Analytical Solutions: $495.5M (+8.0%); Diagnostics: $309.0M (+4.2%).
Net income: $64.5M (-9.5%); non-GAAP net income: $192.3M (+17.0%); EPS: $0.58 (-9.4%); non-GAAP EPS: $1.35 (+14.4%).
2020 guidance: Revenue: $3.05B – 3.09B (consensus: $3.08B); EPS: $2.89 – 2.99; non-GAAP EPS: $4.50 – 4.60 (consensus: $4.63).
Shares down 3% after hours.
https://seekingalpha.com/news/3534935-perkinelmer-q4-earnings-down-10-soft-guidance-pressures-shares-down-3-ah

CDC: Anticipate Change to Coronavirus Travel Guidance

While there were no new confirmed cases of novel coronavirus in the U.S. overnight, CDC officials said Monday they will probably revise their travel guidance in the coming days.
Details were sparse, but Nancy Messonnier, MD, director of the CDC National Center for Immunization and Respiratory Diseases in Atlanta, previewed that the agency was “imminently thinking” about this decision, but would not elaborate what it would entail.
“I expect in the coming days, travel recommendations will change,” she said on a conference call with reporters, adding that “there may be some disruptions.”
However, the U.S. State Department may have offered a preview of the CDC’s plan, when it issued a Level 3 China travel advisory on Monday, saying travelers should “reconsider travel” to China due to novel coronavirus.
“Although the [CDC] has not yet issued a level 3 warning for all of China, the Chinese authorities are imposing quarantines and restricting travel throughout the country,” the new advisory said.
So far, somewhere around 2,400 people have been screened at U.S. airports, Messonnier said on the press call, and enhanced screening measures continue at the five previously reported U.S. airports. However, she added that the agency is “considering broadening screening.”
Otherwise, Messonnier was tight-lipped about the changes, but perhaps dropped a few bread crumbs. She reiterated the CDC’s current travel guidance: that the agency recommends avoiding all non-essential travel to Hubei province (where Wuhan is located), or a Level 3 travel alert.
But she added that, as of January 26, the CDC has a Level 2 alert on travel to China, asking that travelers returning from China mention it to their healthcare providers, avoid contact with sick people, and wash hands with soap and water for at least 20 seconds.
Currently, 110 persons are under investigation in 26 states. Messonnier said reporters should contact state health departments if they want to know if any of these people are in a particular state. Of these, so far 32 have tested negative, with five confirmed positive.
Data as of Monday morning indicated 2,886 global cases and 81 deaths related to the novel coronavirus. There are now 16 international locations with confirmed cases of the virus, Messonnier said.
Johns Hopkins University’s Center for Systems Science and Engineering has posted a map illustrating the virus’s global spread “in near-real time,” according to a press release.
“As you know, there’s lot of new information coming out of China and we’re trying to take that into account as we move as quickly as we can towards any decision,” Messonnier noted. “We want to make sure we’re being expedient and sensible.”
Messonnier also addressed the issue of transmissibility raised by a reporter, who discussed the ongoing dispute about the coronavirus’s “reproduction number,” the average number of people likely to be develop infection from contact with an infected person.
“I wouldn’t say it’s a dispute,” she said, adding that the reproductive number is “somewhere between 1.5 and 3, which is not really a dramatic difference.” In contrast, the reproduction number for measles virus — one of the most contagious pathogens known — is roughly 12-18.
While Messonnier noted just a “handful of patients with the virus” in the U.S., she reiterated that it doesn’t appear to be spreading in the community. On the other hand, Reuters reported on Monday that Canada’s second case of travel-associated coronavirus was confirmed in the first patient’s wife.
On the press call, CDC officials also said that they have developed a real-time reverse transcription-polymerase chain reaction (rRT-PCR) test for novel coronavirus to diagnose the virus from respiratory specimens. CDC posted the blueprint for this test on Friday, and officials said they anticipate getting it out to clinicians and public health departments in the next 1-2 weeks.
Messonnier also said that the CDC has posted the entire genome of the virus from the first and second patients. She said it is “similar to the one China initially posted a couple weeks ago,” meaning that “it doesn’t look like the virus has mutated.”
https://www.medpagetoday.com/infectiousdisease/publichealth/84563

PerkinElmer EPS beats by $0.02, beats on revenue

PerkinElmer (NYSE:PKI): Q4 Non-GAAP EPS of $1.35 beats by $0.02; GAAP EPS of $0.58 misses by $0.34.
Revenue of $805.5M (+6.5% Y/Y) beats by $4.36M.
Shares -2.59%.
https://seekingalpha.com/news/3534890-perkinelmer-eps-beats-0_02-beats-on-revenue

Acceleron’s sotatercept successful in PAH study; shares up 55% after hours

Acceleron Pharma (NASDAQ:XLRN) announces positive results from a Phase 2 clinical trial, PULSAR, evaluating sotatercept in patients with pulmonary arterial hypertension (PAH).
The study met the primary endpoint of a statistically significant reduction in pulmonary vascular resistance (PVR) at week 24 versus placebo. Key secondary endpoints were also met.
Detailed data will be presented at a future medical conference.
Management will host a conference call today at 5:00 pm ET to discuss the results.
https://seekingalpha.com/news/3534880-accelerons-sotatercept-successful-in-pah-study-shares-up-55-after-hours

Seven Possible NY Coronavirus Cases Sent To CDC For Testing

Seven cases of the highly contagious coronavirus in New York has been sent to the Centers for Disease Control and testing, the state Health Department announced.
New York Gov. Andrew Cuomo announced on Sunday, Jan. 26 that seven people have been identified for testing, with three coming up negative, and four still pending. There have been no confirmed cases in New York as of Monday, Jan. 27.
Health officials did not say where the New Yorkers being tested lived. The coronavirus has been linked to 56 deaths in China and has infected more than 2,700.
According to Cuomo, with travelers expected to begin returning to the country this week from Lunar New Year celebrations in China, the New York State Department of Health (DOH) has begun working with the Port Authority of New York and New Jersey to post multilingual signage about the virus at all four Port Authority international airports.
Last week the DOH issued guidance to healthcare providers, healthcare facilities, clinical laboratories and local health departments providing updated information about the outbreak, and ensuring protocols are in place if a patient is experiencing symptoms consistent with the novel coronavirus, had a travel history to Wuhan, China, where the novel coronavirus originated.
“While the experts still believe the risk of catching this novel coronavirus is currently low in New York, I want all New Yorkers to know we are prepared and continue to take all necessary steps to keep people informed and safe,” Cuomo said. “I have directed the Department of Health and other state agencies to continue working closely with the CDC, the World Health Organization, our local and federal government partners, and New York’s healthcare providers to ensure we stay ahead of this situation.”
There is currently no vaccine for the coronavirus, though health officials said that “everyday preventative actions can help stop the spread of the virus, including washing hands, avoiding contact with people who are sick and frequently cleaning or disinfecting objects and surfaces.
Health officials noted that “since this virus is very new, health authorities continue to carefully watch how this virus spreads. It is probably spread from animals to humans, and it also may be spread from person to person. It’s not clear yet how easily novel coronavirus spreads from person-to-person. It’s important to know this in order to better understand the risk associated with this virus.”
Symptoms of the novel coronavirus may include:
  • Runny nose;
  • Headache;
  • Cough;
  • Sore throat;
  • Fever.
New York State Health Commissioner. Howard Zucker said, “We encourage all New Yorkers to take normal precautions against sickness, such as regular hand washing and avoiding close contact with people who are sick. We will continue to work with our partners at the CDC and are prepared to assist in any way necessary to ensure the health of New Yorkers.”
https://dailyvoice.com/new-york/southorange/news/seven-possible-ny-coronavirus-cases-sent-to-cdc-for-testing/782444/

US scrambles to evacuate some Americans from Wuhan

Hundreds of Americans will be be removed Tuesday from the epicenter of the deadly coronavirus in Wuhan, China, on a charter flight to California, according to a report.
The operation will fly out only some of the estimated 1,000 US citizens trapped in the city, which has been on lockdown after the virus broke out there last month, the Wall Street Journal reported.
Officials secured the charter plane, which seats around 230 people, to transport US diplomats and their families, as well as an “extremely limited” number of private citizens from the city’s closed airport, the outlet reported.
It’s unclear where exactly the flight will land, but some who have snagged seats were told it was headed to Ontario, Calif., which is east of Los Angeles, according to the report.
But the flight leaves behind hundreds of US citizens stuck in Wuhan, where reinforcements for medical personnel were dispatched Monday to help deal with the health crisis.
The death toll reached 81 on Monday as the number of cases surpasses 2,800 in China, the Guardian reported.
https://nypost.com/2020/01/27/us-scrambles-to-evacuate-americans-from-wuhan-on-chartered-flight/

Economic hit from coronavirus likely to be short lived, but still scary



The threat of China’s coronavirus triggering a global contagion has put a scare into Wall Street, but pandemics and other disasters have rarely had a lasting effect on the U.S. or global economies.
The Dow Jones Industrial Average DJIA, -1.35%  sank more than 1% in Monday trades on fresh angst about the deadly coronavirus in China, home of the world’s second largest economy. Investors worry the disease could spread, dent the Chinese economy and radiate out to the rest of the world.
Read: How the stock market has performed during past viral outbreaks
China’s economy will undoubtedly be affected. The country has quarantined millions of people, restricted travel and extended the long Lunar New Year holiday to try to limit the spread of the coronavirus.
“It’s a little scary, frankly, not knowing the extent that this virus has spread.”
– Jennifer Lee, senior economist at BMO Capital Markets
A similar outbreak in China in 2003 involving SARS might be a template for how the coronavirus scare plays out. Back then, China’s economic growth briefly came to a halt as the country sought to corral a virus that killed almost 800 people. SARS soon petered out and China’s economy snapped back.
The U.S. and broader global economy, for their part, suffered barely any ill effects in 2003.
Analysts suspect a similar outcome this time around, but they are taking a wait-and-see approach for now.
“It is too early to assess the potential impact of the Chinese outbreak of coronavirus on the global economy,” said Agathe Demarais, global forecasting director at the Economist Intelligence Unit. “If the epidemic spreads globally, or if the number of deaths rises sharply, the knock-on impact on the global economy could be high, especially if international air travel is severely disrupted as a result of the epidemic.”
One big difference between SARS and the coronavirus is the mortality rate. The coronavirus has killed an estimated 3% to 4% of the people afflicted — most of them 50 or older — compared to nearly 10% of SARS victims, according to the World Health Organization. The WHO on Monday raised its risk level to “high” from “moderate.”
The coronavirus appears to spread more rapidly, however, and it’s still unclear just how many people have been infected.
“It’s a little scary, frankly, not knowing the extent that this virus has spread,” said senior economist Jennifer Lee of BMO Capital Markets. The uncertainty has contributed to the Wall Street malaise and interrupted a string of record highs in U.S. stocks markets.

Still, economists and market strategists are quick to point out that stocks typically recover quickly from health scares or other natural disasters that have proven more deadly.
“We have plenty of historical evidence of the impact of events like plagues, floods, hurricanes and storms,” said Carl Weinberg of High Frequency Economics. “They disrupt activity for a short period and often substantially reduce current-period output. However, output is made up rather quickly in the subsequent periods.”
Researchers at other Wall Street firms such as Renaissance Macro Research, Oxford Economics and Glenmede Trust Co. have all found same pattern.
“Markets have largely shrugged off epidemic scares in the past,” according to Glenmede Trust Company’s Investment Strategy Team. “History shows epidemics tend to have temporary impacts on markets,” Renaissance Macro said.
In the U.S., for example, the stock market fell as much as 15% during the SARS scare, but equities returned to their previous peak within several months. The broader U.S. economy, what’s more, grew a heady 3.5% in the spring of 2003 and 7% in the summer.
Yet as the trade war with China shows, the U.S. can also get hurt when Chinese growth is stunted, especially since its economy is so much bigger now than it was in 2003. Many countries are dependent on trade with China, giving it a huge influence on the global economy.
The trade fight caused China’s growth to slow to a 30-year low in 2019, undermining the broader global economy and causing U.S. exports to decline. The damage was enough to pressure President Trump to strike a temporary trade truce of sorts with China as he seeks to win a second term in 2020.
https://www.marketwatch.com/story/economic-hit-from-coronavirus-likely-to-be-short-lived-but-its-still-a-little-scary-frankly-2020-01-27?siteid=rss&rss=1