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Revvity (RVTY) to Report Q2 Earnings: What's in the Cards?
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Revvity, Inc. (RVTY - Free Report) is slated to report second-quarter 2024 results on Jul 29, before market open.
In the last reported quarter, the company delivered a positive earnings surprise of 4.62%. RVTY’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 3.67%.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $694.4 million. The consensus mark for earnings is pinned at $1.13 per share, indicating a deterioration of 6.6% from the prior-year quarter.
Diagnostics Segment
Revvity’s Diagnostics business grew 1% organically in the last reported quarter on the back of strong immunodiagnostics business. Newborn Screening also showed strong growth. However, Revvity’s Newborn Screening witnessed some pressure in China. During the first quarter, the company’s Software business also performed better than the company’s expectations. This trend is likely to have continued in the to-be-reported quarter as well.
Per management, the diagnostic segment is likely to witness certain volatility relating to volume-based procurement in China. Applied Genomics, which accounts for roughly a quarter of the Diagnostics segment, declined during the last reported quarter and it is likely to continue the trend, thus hurting the segment in the to-be-reported quarter as well.
Our estimate for the Diagnostic segment’s revenues is pegged at $373 million, flat year over year.
Life Sciences Segment
In the first quarter of 2024, the Life Sciences segment’s revenues declined 8% year over year due to lower demand from pharma biotech customers. This trend is likely to have continued in the quarter to be reported. Our estimate for this segment’s revenues is pinned at $321 million, indicating a 4.5% year-over-year decline.
Meanwhile, continued supply-chain challenges and inflationary pressures in some countries have fueled material costs, thereby hurting margins. However, productivity initiatives, improved pricing and strict cost control measures are likely to have benefited RVTY’s second-quarter gross and operating margins. New product introductions might have improved product mix and, thereby, gross margin.
Other Factors to Consider
In April, Revvity announced that its software and informatics division, Revvity Signals, launched Signals Synergy. Per the company, it is a software solution designed to drive greater collaboration, project management and data exchange between pharmaceutical and biotechnology sponsors with their external contract partners.
The latest product is expected to significantly boost Revvity’s Signals Software portfolio and solidify its foothold in the niche space. The company is likely to provide more details on the same in the to-be-reported quarter.
In April, Revvity also announced the launch of the Auto-Pure 2400 liquid handler from Allsheng for use with its T-SPOT.TB test. The solution, which has an intuitive software user interface, is expected to simplify lab workflows.
The latest product is expected to significantly boost Revvity’s Diagnostics segment and solidify its foothold in the infectious diseases space. RVTY may provide an update on the new launch during the second-quarter earnings call.
What the Zacks Model Unveils
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Revvity currently has a Zacks Rank #4 (Sell).
The company’s shares have surged 25.3% year to date. MCK’s earnings missed estimates in the last reported quarter. McKesson has a four-quarter average earnings surprise of 8.38%.
Inari Medical (NARI - Free Report) has an Earnings ESP of +45.95% and a Zacks Rank of 3 at present.
The company’s shares have lost 15.4% year to date. NARI’s earnings missed estimates in the last reported quarter. Inari Medical has a trailing four-quarter average earnings surprise of 130.74%.
AxoGen (AXGN - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank of 3 at present.
The stock has risen 33.5% year to date. AXGN’s earnings beat estimates in the last reported quarter. AxoGen has a four-quarter average earnings surprise of 66.46%.
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Revvity (RVTY) to Report Q2 Earnings: What's in the Cards?
Revvity, Inc. (RVTY - Free Report) is slated to report second-quarter 2024 results on Jul 29, before market open.
In the last reported quarter, the company delivered a positive earnings surprise of 4.62%. RVTY’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 3.67%.
Q2 Estimates
The Zacks Consensus Estimate for revenues is pegged at $694.4 million. The consensus mark for earnings is pinned at $1.13 per share, indicating a deterioration of 6.6% from the prior-year quarter.
Diagnostics Segment
Revvity’s Diagnostics business grew 1% organically in the last reported quarter on the back of strong immunodiagnostics business. Newborn Screening also showed strong growth. However, Revvity’s Newborn Screening witnessed some pressure in China. During the first quarter, the company’s Software business also performed better than the company’s expectations. This trend is likely to have continued in the to-be-reported quarter as well.
Per management, the diagnostic segment is likely to witness certain volatility relating to volume-based procurement in China. Applied Genomics, which accounts for roughly a quarter of the Diagnostics segment, declined during the last reported quarter and it is likely to continue the trend, thus hurting the segment in the to-be-reported quarter as well.
Our estimate for the Diagnostic segment’s revenues is pegged at $373 million, flat year over year.
Life Sciences Segment
In the first quarter of 2024, the Life Sciences segment’s revenues declined 8% year over year due to lower demand from pharma biotech customers. This trend is likely to have continued in the quarter to be reported. Our estimate for this segment’s revenues is pinned at $321 million, indicating a 4.5% year-over-year decline.
Meanwhile, continued supply-chain challenges and inflationary pressures in some countries have fueled material costs, thereby hurting margins. However, productivity initiatives, improved pricing and strict cost control measures are likely to have benefited RVTY’s second-quarter gross and operating margins. New product introductions might have improved product mix and, thereby, gross margin.
Other Factors to Consider
In April, Revvity announced that its software and informatics division, Revvity Signals, launched Signals Synergy. Per the company, it is a software solution designed to drive greater collaboration, project management and data exchange between pharmaceutical and biotechnology sponsors with their external contract partners.
The latest product is expected to significantly boost Revvity’s Signals Software portfolio and solidify its foothold in the niche space. The company is likely to provide more details on the same in the to-be-reported quarter.
In April, Revvity also announced the launch of the Auto-Pure 2400 liquid handler from Allsheng for use with its T-SPOT.TB test. The solution, which has an intuitive software user interface, is expected to simplify lab workflows.
The latest product is expected to significantly boost Revvity’s Diagnostics segment and solidify its foothold in the infectious diseases space. RVTY may provide an update on the new launch during the second-quarter earnings call.
What the Zacks Model Unveils
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Revvity currently has a Zacks Rank #4 (Sell).
Revvity Inc. Price and EPS Surprise
Revvity Inc. price-eps-surprise | Revvity Inc. Quote
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post earnings beat this reporting cycle.
McKesson (MCK - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have surged 25.3% year to date. MCK’s earnings missed estimates in the last reported quarter. McKesson has a four-quarter average earnings surprise of 8.38%.
Inari Medical (NARI - Free Report) has an Earnings ESP of +45.95% and a Zacks Rank of 3 at present.
The company’s shares have lost 15.4% year to date. NARI’s earnings missed estimates in the last reported quarter. Inari Medical has a trailing four-quarter average earnings surprise of 130.74%.
AxoGen (AXGN - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank of 3 at present.
The stock has risen 33.5% year to date. AXGN’s earnings beat estimates in the last reported quarter. AxoGen has a four-quarter average earnings surprise of 66.46%.