Shares of PerkinElmer Inc. sank Friday after the health and industrial sciences company reported weaker sales due to recent strength in the dollar, and lowered its profit expectations for the year.
PerkinElmer stock lost $1.82, or 9.5 percent, to $17.27 in afternoon trading, and earlier fell as much as 17.9 percent.
The Waltham, Mass., company said sales in its human and environmental health businesses fell, and as result, said it would probably not be able to reach the higher end of its profit forecast. It now expects an adjusted profit of $1.18 to $1.24 per share, which implies a decline of about 11 to 15 percent from 2008.
The company previously said its profit could decrease anywhere from the mid-single digits to the mid-teens, and Thomson Reuters says analysts expected $1.27 per share. It reported an adjusted profit of $1.39 per share a year ago. Its second-quarter sales were about $24.7 million less than analysts expected.
Analyst Quintin Lai of Robert W. Baird and Co. downgraded the stock to "Neutral" from "Outperform" due to its share price. He said the company's sales fell 9 percent in the second quarter if the effects of unfavorable currency exchange are excluded. Lai had estimated a 3-percent decrease.
Lai said he expects PerkinElmer to return to profit growth because it is reducing costs. While demand from industrial and medical imaging customers has fallen, he said other businesses could be stabilizing. He kept a price target of $20 per share.
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