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Revvity (RVTY) Misses on Q3 Earnings, Lowers '23 EPS View
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Revvity, Inc. (RVTY - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of $1.18, which missed the Zacks Consensus Estimate of $1.19 by 0.8%. The bottom line also declined 2.5% from the year-ago quarter’s level.
GAAP EPS from continuing operations was 8 cents compared with 67 cents in the prior-year period. However, GAAP EPS was 28 cents, including a loss of 18 cents per share from discontinued operations.
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $671 million, down 5.8% year over year and 7% organically. However, the metric was up 1% organically after excluding sales from COVID-19 products. The top line missed the Zacks Consensus Estimate by 3.1%.
Segmental Details
Revvity reports under two operating segments — Life Sciences and Diagnostics.
Life Sciences
Revenues from this segment totaled $308 million, indicating a decrease of 1.6% from the year-ago quarter’s level. Organically, the segment witnessed a decline of 3%.
Adjusted operating income amounted to $114 million, up 2.6% from that recorded in the prior-year quarter.
Diagnostics
This segment’s revenues totaled $363 million, down 9% on a year-over-year basis. Organically, the top line decreased 10%.
Adjusted operating income amounted to $82 million, down 33.3% from the year-ago quarter’s figure.
Selling, general and administrative expenses totaled $250.3 million, up 3.1% year over year. Research and development expenses amounted to $53 million, down 0.9% from the year-ago quarter’s reported number.
Adjusted operating income declined 42.4% to $185 million from the year-ago quarter’s level. Adjusted operating margin, as a percentage of revenues, was 27.5%, down 390 bps.
Financial Update
The company exited the third quarter with cash and cash equivalents of $1.43 billion compared with $2.07 billion in the year-ago period.
Net cash used in operating activities, including discontinued operations, totaled $33.5 million against net cash provided by operating activities of $160 million in the year-ago quarter.
2023 Guidance
Revvity provided its updated earnings and revenue guidance for full-year 2023.
For 2023, the company now expects adjusted EPS in the range of $4.53-$4.57 compared with the previous guidance of $4.70-$4.90. Revenues are anticipated in the band of $2.72-$2.74 billion compared with the previous projection of $ 2.80-$2.85 billion. The Zacks Consensus Estimate for EPS and sales is pegged at $4.76 per share and $2.82 billion, respectively.
Zacks Rank and Stocks to Consider
Currently, Revvity carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Medpace (MEDP - Free Report) and Boston Scientific (BSX - Free Report) .
Revenues of $10.14 billion outpaced the consensus mark by 3.6%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.76%.
Medpace reported third-quarter 2023 adjusted EPS of $2.22, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $492 million outpaced the consensus mark by 3.4%. The company currently carries a Zacks Rank #2.
MEDP has an estimated growth rate of 18% for 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.62%.
Boston Scientific reported third-quarter 2023 adjusted EPS of 50 cents and revenues of $3.53 billion, which beat their respective Zacks Consensus Estimate by 4.2% and 1.8%, respectively. It currently carries a Zacks Rank #2.
BSX has a long-term estimated growth rate of 12.8%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.34%.
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Revvity (RVTY) Misses on Q3 Earnings, Lowers '23 EPS View
Revvity, Inc. (RVTY - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of $1.18, which missed the Zacks Consensus Estimate of $1.19 by 0.8%. The bottom line also declined 2.5% from the year-ago quarter’s level.
GAAP EPS from continuing operations was 8 cents compared with 67 cents in the prior-year period. However, GAAP EPS was 28 cents, including a loss of 18 cents per share from discontinued operations.
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $671 million, down 5.8% year over year and 7% organically. However, the metric was up 1% organically after excluding sales from COVID-19 products. The top line missed the Zacks Consensus Estimate by 3.1%.
Segmental Details
Revvity reports under two operating segments — Life Sciences and Diagnostics.
Life Sciences
Revenues from this segment totaled $308 million, indicating a decrease of 1.6% from the year-ago quarter’s level. Organically, the segment witnessed a decline of 3%.
Adjusted operating income amounted to $114 million, up 2.6% from that recorded in the prior-year quarter.
Diagnostics
This segment’s revenues totaled $363 million, down 9% on a year-over-year basis. Organically, the top line decreased 10%.
Adjusted operating income amounted to $82 million, down 33.3% from the year-ago quarter’s figure.
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 $250.3 million, up 3.1% year over year. Research and development expenses amounted to $53 million, down 0.9% from the year-ago quarter’s reported number.
Adjusted operating income declined 42.4% to $185 million from the year-ago quarter’s level. Adjusted operating margin, as a percentage of revenues, was 27.5%, down 390 bps.
Financial Update
The company exited the third quarter with cash and cash equivalents of $1.43 billion compared with $2.07 billion in the year-ago period.
Net cash used in operating activities, including discontinued operations, totaled $33.5 million against net cash provided by operating activities of $160 million in the year-ago quarter.
2023 Guidance
Revvity provided its updated earnings and revenue guidance for full-year 2023.
For 2023, the company now expects adjusted EPS in the range of $4.53-$4.57 compared with the previous guidance of $4.70-$4.90. Revenues are anticipated in the band of $2.72-$2.74 billion compared with the previous projection of $ 2.80-$2.85 billion. The Zacks Consensus Estimate for EPS and sales is pegged at $4.76 per share and $2.82 billion, respectively.
Zacks Rank and Stocks to Consider
Currently, Revvity carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Medpace (MEDP - Free Report) and Boston Scientific (BSX - Free Report) .
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported third-quarter 2023 adjusted EPS of $1.14, which beat the Zacks Consensus Estimate by 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $10.14 billion outpaced the consensus mark by 3.6%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.76%.
Medpace reported third-quarter 2023 adjusted EPS of $2.22, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $492 million outpaced the consensus mark by 3.4%. The company currently carries a Zacks Rank #2.
MEDP has an estimated growth rate of 18% for 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.62%.
Boston Scientific reported third-quarter 2023 adjusted EPS of 50 cents and revenues of $3.53 billion, which beat their respective Zacks Consensus Estimate by 4.2% and 1.8%, respectively. It currently carries a Zacks Rank #2.
BSX has a long-term estimated growth rate of 12.8%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.34%.