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Revvity, Inc. (RVTY - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.25, which beat the Zacks Consensus Estimate of $1.15 by 8.7%. However, the bottom line declined 12.8% from the year-ago quarter’s level.
GAAP EPS from continuing operations was 52 cents compared with 77 cents in the prior-year period. However, GAAP EPS was 64 cents, which includes earnings of 12 cents per share from discontinued operations.
Price Performance
RVTY’s shares have declined 12.6% in the past six months against the industry's growth of 1.5%. The S&P 500 Index has increased 7.5% in the same period.
Image Source: Zacks Investment Research
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $695.9 million, down 6.1% year over year and 7% organically. The metric was down 3% organically after excluding sales from COVID-19 products. However, the top line beat the Zacks Consensus Estimate by 4.3%.
Segmental Details
Revvity reports under two operating segments — Life Sciences and Diagnostics.
Life Sciences
Revenues from this segment totaled $320 million, indicating a decrease of 7.8% from the year-ago quarter’s level. Organically, the segment witnessed a decline of 9%.
Adjusted operating income amounted to $118 million, down 19.2% from that recorded in the prior-year quarter.
Diagnostics
This segment’s revenues totaled $376 million, down 4.6% on a year-over-year basis. Organically, the top line decreased 6%.
Adjusted operating income amounted to $80 million, down 29.2% from the year-ago quarter’s figure.
Margin Analysis
Selling, general and administrative expenses totaled $256.7 million, up 5.1% year over year. Research and development expenses amounted to $49.6 million, down 9.1% from the year-ago quarter’s reported number.
Adjusted operating income declined 20% to $191.8 million from the year-ago quarter’s level. Adjusted operating margin, as a percentage of revenues, was 27.5%, contracting 480 basis points.
Full-Year Results
Revvity recorded total revenues of $2.75 billion in 2023, down 16.9% year over year. Adjusted EPS for 2023 was $4.65, down 32.8% from the prior year.
Financial Update
The company exited the fourth quarter with cash and cash equivalents of $1.60 billion compared with $1.43 billion in the previous quarter.
Net cash provided by operating activities, including discontinued operations, totaled $196.6 million compared with net cash provided by operating activities of $139.2 million in the year-ago quarter.
2024 Guidance Issued
Revvity issued its earnings and revenue guidance for 2024.
For 2024, the company expects its adjusted EPS in the range of $4.55-$4.75. Revenues are anticipated to be in the band of $2.79-$2.85 billion. The Zacks Consensus Estimate for EPS and sales is pegged at $4.54 per share and $2.77 billion, respectively.
Some better-ranked stocks to consider in the broader medical space are Universal Health Services (UHS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Acadia Healthcare (ACHC - Free Report) .
Universal Health Services, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 4.4% for 2024. UHS’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 5.47%. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UHS’s shares have gained 14.0% in the past six months compared with the industry’s 9.0% rise.
Integer Holdings, presently carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 9.4% in the past six months compared with the industry’s 7.5% rise.
Acadia Healthcare, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. ACHC’s long-term earnings are expected to grow at 11.2%.
Acadia’s shares have gained 4.7% in the past six months compared with the industry’s 9.0% rise.
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Revvity (RVTY) Q4 Earnings Top, EPS View Above Expectation
Revvity, Inc. (RVTY - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.25, which beat the Zacks Consensus Estimate of $1.15 by 8.7%. However, the bottom line declined 12.8% from the year-ago quarter’s level.
GAAP EPS from continuing operations was 52 cents compared with 77 cents in the prior-year period. However, GAAP EPS was 64 cents, which includes earnings of 12 cents per share from discontinued operations.
Price Performance
RVTY’s shares have declined 12.6% in the past six months against the industry's growth of 1.5%. The S&P 500 Index has increased 7.5% in the same period.
Image Source: Zacks Investment Research
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $695.9 million, down 6.1% year over year and 7% organically. The metric was down 3% organically after excluding sales from COVID-19 products. However, the top line beat the Zacks Consensus Estimate by 4.3%.
Segmental Details
Revvity reports under two operating segments — Life Sciences and Diagnostics.
Life Sciences
Revenues from this segment totaled $320 million, indicating a decrease of 7.8% from the year-ago quarter’s level. Organically, the segment witnessed a decline of 9%.
Adjusted operating income amounted to $118 million, down 19.2% from that recorded in the prior-year quarter.
Diagnostics
This segment’s revenues totaled $376 million, down 4.6% on a year-over-year basis. Organically, the top line decreased 6%.
Adjusted operating income amounted to $80 million, down 29.2% from the year-ago quarter’s figure.
Margin Analysis
Selling, general and administrative expenses totaled $256.7 million, up 5.1% year over year. Research and development expenses amounted to $49.6 million, down 9.1% from the year-ago quarter’s reported number.
Adjusted operating income declined 20% to $191.8 million from the year-ago quarter’s level. Adjusted operating margin, as a percentage of revenues, was 27.5%, contracting 480 basis points.
Full-Year Results
Revvity recorded total revenues of $2.75 billion in 2023, down 16.9% year over year. Adjusted EPS for 2023 was $4.65, down 32.8% from the prior year.
Financial Update
The company exited the fourth quarter with cash and cash equivalents of $1.60 billion compared with $1.43 billion in the previous quarter.
Net cash provided by operating activities, including discontinued operations, totaled $196.6 million compared with net cash provided by operating activities of $139.2 million in the year-ago quarter.
2024 Guidance Issued
Revvity issued its earnings and revenue guidance for 2024.
For 2024, the company expects its adjusted EPS in the range of $4.55-$4.75. Revenues are anticipated to be in the band of $2.79-$2.85 billion. The Zacks Consensus Estimate for EPS and sales is pegged at $4.54 per share and $2.77 billion, respectively.
Revvity Inc. Price, Consensus and EPS Surprise
Revvity Inc. price-consensus-eps-surprise-chart | Revvity Inc. Quote
Zacks Rank and Stocks to Consider
Currently, RVTY carries a Zacks Rank #3 (Hold).
Some better-ranked stocks to consider in the broader medical space are Universal Health Services (UHS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Acadia Healthcare (ACHC - Free Report) .
Universal Health Services, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 4.4% for 2024. UHS’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 5.47%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UHS’s shares have gained 14.0% in the past six months compared with the industry’s 9.0% rise.
Integer Holdings, presently carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 9.4% in the past six months compared with the industry’s 7.5% rise.
Acadia Healthcare, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. ACHC’s long-term earnings are expected to grow at 11.2%.
Acadia’s shares have gained 4.7% in the past six months compared with the industry’s 9.0% rise.