We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Revvity (RVTY) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Revvity, Inc. (RVTY - Free Report) is slated to report fourth-quarter 2023 results on Feb 1, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 0.84%. RVTY’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 1.53%.
Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $667 million. The consensus mark for earnings is pinned at $1.15 per share, indicating a deterioration of 32.4% 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 in this segment declined 9% in the last reported quarter, primarily due to a drop in demand for COVID-related products. However, this is likely to have been partially offset by a strong demand for non-COVID products in the fourth 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’s revenues is pegged at $294.3 million, indicating a 15.3% decline year over year.
Another Revenue Driver
In the third quarter of 2023, the Life Sciences segment’s revenues declined 1.6% year over year. This trend is likely to have continued in the quarter to be reported.
Our estimate for this segment’s revenues is pinned at $367.2 million, indicating a 6.8% year-over-year improvement.
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 fourth-quarter gross and operating margins. New product introductions might have improved product mix and, thereby, gross margin.
Other Factors to Consider
In December, Revvity launched its innovative platform — EONIS Q system — marking a significant leap in the molecular testing landscape for spinal muscular atrophy and severe combined immunodeficiency in newborns. The new molecular testing system is expected to have brought additional revenues for 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 these systems during the fourth-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 stock has declined 5.2% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank of 2 at present.
The stock has gained 15% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
AMN Healthcare Services (AMN - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank of 3 at present.
The stock has lost 22.3% in the past year. COO’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.66%.
Image: Shutterstock
Revvity (RVTY) to Report Q4 Earnings: What's in the Cards?
Revvity, Inc. (RVTY - Free Report) is slated to report fourth-quarter 2023 results on Feb 1, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 0.84%. RVTY’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 1.53%.
Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $667 million. The consensus mark for earnings is pinned at $1.15 per share, indicating a deterioration of 32.4% 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 in this segment declined 9% in the last reported quarter, primarily due to a drop in demand for COVID-related products. However, this is likely to have been partially offset by a strong demand for non-COVID products in the fourth 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’s revenues is pegged at $294.3 million, indicating a 15.3% decline year over year.
Another Revenue Driver
In the third quarter of 2023, the Life Sciences segment’s revenues declined 1.6% year over year. This trend is likely to have continued in the quarter to be reported.
Our estimate for this segment’s revenues is pinned at $367.2 million, indicating a 6.8% year-over-year improvement.
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 fourth-quarter gross and operating margins. New product introductions might have improved product mix and, thereby, gross margin.
Other Factors to Consider
In December, Revvity launched its innovative platform — EONIS Q system — marking a significant leap in the molecular testing landscape for spinal muscular atrophy and severe combined immunodeficiency in newborns. The new molecular testing system is expected to have brought additional revenues for 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 these systems during the fourth-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 Consensus
Revvity Inc. price-consensus-chart | Revvity Inc. Quote
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 +6.43% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has declined 5.2% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank of 2 at present.
The stock has gained 15% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
AMN Healthcare Services (AMN - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank of 3 at present.
The stock has lost 22.3% in the past year. COO’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.66%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.