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Revvity (RVTY) Q2 Earnings Beat Estimates, Guidance Revised

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Revvity, Inc. (RVTY - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $1.22, which beat the Zacks Consensus Estimate of $1.13 by 7.9%. The bottom line improved 0.8% from the year-ago quarter’s level.

GAAP EPS from continuing operations was 59 cents compared with 47 cents in the prior-year period. However, GAAP EPS in the reported quarter was 45 cents, which includes a loss of 14 cents per share from discontinued operations.

Revenue Details

Based in Waltham, MA, this leading MedTech company reported revenues of $691.7 million, down 2% year over year and 1% organically. The top line missed the Zacks Consensus Estimate by 0.4%.

Segmental Details

Revvity reports under two operating segments — Life Sciences and Diagnostics.

Life Sciences

Revenues from this segment totaled $313.8 million, indicating a decrease of 6.7% from the year-ago quarter’s level. Organically, the segment witnessed a decline of 6% year over year.

Adjusted operating income amounted to $112.4 million, down 12% from the prior-year quarter.

Diagnostics

This segment’s revenues totaled $378 million, up 1.4% on a year-over-year basis. Organically, the top line increased 3% year over year.

Adjusted operating income amounted to $97.9 million, up 14.9% from the year-ago quarter’s figure.

Revvity Inc. Price, Consensus and EPS Surprise

Revvity Inc. Price, Consensus and EPS Surprise

Revvity Inc. price-consensus-eps-surprise-chart | Revvity Inc. Quote

Margin Analysis

Selling, general and administrative expenses totaled $251.7 million, down 5.8% year over year. Research and development expenses amounted to $48.1 million, down 15.9% from the year-ago quarter’s reported number.

Adjusted operating income declined 2.7% to $198.9 million from the year-ago quarter’s level. Adjusted operating margin, as a percentage of revenues, was 28.7%, contracting 10 basis points.

Financial Update

The company exited the second quarter of 2024 with cash and cash equivalents of $1.95 billion compared with $1.70 billion in the prior-quarter end.

Net cash provided by operating activities, including discontinued operations, totaled $158.6 million compared with net cash used in operating activities of $135.3 million in the year-ago quarter.

2024 Guidance

Revvity raised its earnings and updated its revenue guidance for 2024.

For 2024, the company expects its adjusted EPS in the range of $4.70-$4.80. Revenues are anticipated to be in the band of $2.77-$2.79 billion. The Zacks Consensus Estimate for EPS and revenues is pegged at $4.64 per share and $2.80 billion, respectively.

Price Performance

RVTY’s shares have gained 3.6% in the past six months compared with the industry's growth of 6.7%. The S&P 500 Index has increased 10.9% in the same period.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

RVTY carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation (BSX - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report) .

Boston Scientific reported first-quarter 2024 adjusted earnings per share of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.5%.

Hologic, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.

Hologic’s shares have risen 0.3% year to date compared with the industry’s 4.7% growth.

Universal Health Services has an Earnings ESP of +2.91% and a Zacks Rank of 2 at present. UHS has an estimated earnings growth rate of 30.5% for 2024.

UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.


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