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Revvity (RVTY) to Report Q3 Earnings: What's in the Cards?
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Revvity, Inc. (RVTY - Free Report) is slated to report third-quarter 2023 results on Oct 30, before market open. In the last reported quarter, the company delivered an earnings surprise of 2.54%. RVTY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 2.25%.
Q3 Estimates
The Zacks Consensus Estimate for revenues is pegged at $692.2 million, indicating a decline of 2.8% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at $1.19 per share, indicating a deterioration of 21.2% from that recorded in the prior-year quarter.
Lower COVID Revenues Likely to Hurt Diagnostics
Revvity’s Diagnostics business is expected to have continued its declining trend in the quarter to be reported. Sales at this segment declined 34.5% in the last reported quarter, primarily due to a drop in demand for COVID-related products. However, this is likely to be partially offset by a strong demand for non-COVID products in the third quarter.
The removal of COVID-19 restrictions in China might have boosted the continued demand for RVTY’s immunodiagnostics business. This, in turn, is likely to have partially offset loss of sales from COVID-related products.
Our estimate for the Diagnostic segment is pegged at $366.6 million, indicating an 8.1% decline year over year.
Another Revenue Driver
In the second quarter of 2023, the Life Sciences segment grew 3%. This was mainly due to the continued demand for Revvity’s preclinical discovery business and strength in its informatics franchise. This trend is likely to have continued in the quarter to be reported.
Our estimate for this segment is pinned at $325.1 million, indicating a 3.9% year-over-year growth.
Meanwhile, continued supply-chain challenges and inflationary pressures in some countries are expected to have fueled material costs, thereby hurting margins.
However, productivity initiatives, improved pricing and strict cost control measures are likely to have benefited RVTY’s third-quarter gross and operating margins. New product introductions might have improved product mix and, thereby, gross margin.
In May, Revvity inked a new license agreement with AstraZeneca for its next-generation base editing technology, Pin-point. The new agreement is expected to have significantly strengthened the company’s Life Sciences business unit in the to-be-reported quarter.
In June, Revvity launched two new systems — Signals Research Suite, a cloud-native SaaS platform supporting drug development; and UNIQO 160 (CE-IVDR), an autoimmune diagnostic. RVTY may provide an update on the launch progress during the third-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 #5 (Strong Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
The stock has gained 2.5% year to date. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.51%.
Avanos Medical (AVNS - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3 at present.
The stock has lost 32.5% year to date. AVNS’ earnings missed estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 0.61%.
The Cooper Companies (COO - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank of 3 at present.
The stock has lost 2.8% year to date. COO’s earnings met estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 0.09%.
Image: Shutterstock
Revvity (RVTY) to Report Q3 Earnings: What's in the Cards?
Revvity, Inc. (RVTY - Free Report) is slated to report third-quarter 2023 results on Oct 30, before market open. In the last reported quarter, the company delivered an earnings surprise of 2.54%. RVTY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 2.25%.
Q3 Estimates
The Zacks Consensus Estimate for revenues is pegged at $692.2 million, indicating a decline of 2.8% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at $1.19 per share, indicating a deterioration of 21.2% from that recorded in the prior-year quarter.
Lower COVID Revenues Likely to Hurt Diagnostics
Revvity’s Diagnostics business is expected to have continued its declining trend in the quarter to be reported. Sales at this segment declined 34.5% in the last reported quarter, primarily due to a drop in demand for COVID-related products. However, this is likely to be partially offset by a strong demand for non-COVID products in the third quarter.
The removal of COVID-19 restrictions in China might have boosted the continued demand for RVTY’s immunodiagnostics business. This, in turn, is likely to have partially offset loss of sales from COVID-related products.
Our estimate for the Diagnostic segment is pegged at $366.6 million, indicating an 8.1% decline year over year.
Another Revenue Driver
In the second quarter of 2023, the Life Sciences segment grew 3%. This was mainly due to the continued demand for Revvity’s preclinical discovery business and strength in its informatics franchise. This trend is likely to have continued in the quarter to be reported.
Our estimate for this segment is pinned at $325.1 million, indicating a 3.9% year-over-year growth.
Meanwhile, continued supply-chain challenges and inflationary pressures in some countries are expected to have fueled material costs, thereby hurting margins.
However, productivity initiatives, improved pricing and strict cost control measures are likely to have benefited RVTY’s third-quarter gross and operating margins. New product introductions might have improved product mix and, thereby, gross margin.
Revvity Inc. Price and Consensus
Revvity Inc. price-consensus-chart | Revvity Inc. Quote
Other Factors to Consider
In May, Revvity inked a new license agreement with AstraZeneca for its next-generation base editing technology, Pin-point. The new agreement is expected to have significantly strengthened the company’s Life Sciences business unit in the to-be-reported quarter.
In June, Revvity launched two new systems — Signals Research Suite, a cloud-native SaaS platform supporting drug development; and UNIQO 160 (CE-IVDR), an autoimmune diagnostic. RVTY may provide an update on the launch progress during the third-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 #5 (Strong Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has gained 2.5% year to date. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.51%.
Avanos Medical (AVNS - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3 at present.
The stock has lost 32.5% year to date. AVNS’ earnings missed estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 0.61%.
The Cooper Companies (COO - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank of 3 at present.
The stock has lost 2.8% year to date. COO’s earnings met estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 0.09%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.