PerkinElmer Inc PKI reported first-quarter 2016 earnings of 56 cents per share, which beat the Zacks Consensus Estimate by a nickel. Earnings also increased 12% year over year driven by modest top-line growth and margin expansion. Perkinelmer Inc. - Earnings Surprise | FindTheBest Revenues increased 3.4% on a year-over-year basis to $538.9 million, surpassing the Zacks Consensus Estimate of $533 million. The year-over-year upside was primarily attributed to growth across both the segments. Organically, revenues grew 4% in the quarter.In terms of end-market, revenues from industrial markets declined low single digits due to tough year-ago comparisons and weak customer demand. This was fully offset by better-than-expected performance in the food market, particularly in China and a number of emerging markets.However, Brazil, Japan and Russia remained challenging markets, although they represented less than 5% of the company’s total revenues. In the BRIC economies, organic revenues increased high single digits driven by the strong China results (up double-digits).Nevertheless, PerkinElmer witnessed healthy demand from pharma and biotech, stable academic and government spending, as well as strong demand for food and environmental applications during the quarter.Region-wise, PerkinElmer achieved high single-digit organic revenue growth in Asia, mid-single digit growth in Europe, and low-single digit growth in the Americas.Segment DetailsHuman Health (61.7% of total revenues) segment revenues increased 1.9% year over year to $332.6 million, while Environmental health (38.3% of total revenues) revenues increased 2.7% year over year to $206.2 million in the quarter. Environmental Health organic revenues advanced 5% in the quarter, while Human health increased 3%.On an organic basis, diagnostics business (29% of Human Health revenues) increased mid-single digits, partially offset by mid-single digit decline in medical imaging.Life Science Solutions (33% of Human Health revenues) organic revenues increased in low single-digits, while core research grew mid single digits. Pharma and biotech continue to be key contributors, both growing high single digits.Product/Clinical/Partnership UpdatesDuring the first quarter, PerkinElmer launched Operetta CLS cell imaging system. The company announced that its cell imaging systems have been recently selected by the University College of London, Cambridge University, and Oxford University in connection with a collaborative study to better understand the molecular and genetic mechanisms of dementia.PerkinElmer also recently introduced the Phenoptics quantitative pathology system which allows quantitative and spatial imaging analysis.The company opened a new laboratory in Chennai, India, which broadened its offerings to meet the country’s growing demand for diagnosing prenatal and neonatal conditions.Acquisitions/DivestituresMost recently, PerkinElmer divested its U.S. prenatal laboratory screening service business – NTD – to European Scientific. This will help the company focus on its diagnostic efforts to develop innovative maternal fetal health technologies and solutions for the U.S.During the quarter, the company acquired Netherlands-based Delta Instruments, a manufacturer of infrared analyzers and flow cytometers for dairy products.GuidanceManagement at PerkinElmer expects challenging global economic conditions to persist, with no immediate relief at sight. However, the company is well poised to continue investments in growth areas like pharma and biotech services and solutions, reproductive health, emerging market diagnostics, food quality and safety, and laboratory services throughout 2016.For the second quarter of 2016, revenues are forecasted to grow organically by almost 4%. The current revenue guidance is pegged at the range of $570 million to $575 million. Adjusted earnings are expected in the range of 65 cents to 66 cents per share.For full-year 2016, PerkinElmer expects organic revenue growth of 4% to $2.32 billion.Adjusted gross margin is expected to expand 70--80 basis points (bps) in full-year 2016. Research & Development expenses are forecasted to increase 40 bps owing to continuing investments. As a result, operating margin is likely to increase in the range of 60-80 bps in full-year 2016.Adjusted earnings are now projected in the band of $2.75 to $2.85, up from the earlier guided range of $2.65 to $2.75 per share.Zacks Rank & Other Stocks to ConsiderCurrently, PerkinElmer has a Zacks Rank #2 (Buy).Other stocks in the broader medical sector carrying the same rank are Bruker Corp BRKR, Waters Corp WAT and Mettler-Toledo MTD.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WATERS CORP (WAT): Free Stock Analysis Report PERKINELMER INC (PKI): Free Stock Analysis Report BRUKER CORP (BRKR): Free Stock Analysis Report METTLER-TOLEDO (MTD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research