It has been about a month since the last earnings report for Revvity (RVTY). Shares have lost about 8.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Revvity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

RVTY Q3 Earnings & Revenues Beat Estimates, Guidance Revised

Revvity reported third-quarter 2024 adjusted earnings per share of $1.28, which beat the Zacks Consensus Estimate of $1.13 by 13.3%. The bottom line improved 8.5% from the year-ago quarter’s level.

GAAP earnings per share from continuing operations was 76 cents compared with 26 cents in the prior-year period. However, GAAP earnings per share in the reported quarter was 77 cents, which includes a loss of 1 cent per share from discontinued operations.

Revenue Details

The company reported revenues of $684 million, up 2% year over year as well as organically. The top line surpassed the Zacks Consensus Estimate by 9.4%.

Segmental Details

Life Sciences

Revenues from this segment totaled $300.9 million, indicating a decrease of 2.3% from the year-ago quarter’s level. Organically, the segment witnessed a decline of 3% year over year.

Adjusted operating income amounted to $102.9 million, down 9.8% from the prior-year quarter.

Diagnostics

This segment’s revenues totaled $383.3 million, up 5.6% on a year-over-year basis. Organically, the top line increased 5% year over year.

Adjusted operating income amounted to $101.4 million, up 24.1% from the year-ago quarter’s figure.

Margin Analysis

Selling, general and administrative expenses totaled $237.5 million, down 5.1% year over year. Research and development expenses amounted to $49.1 million, down 7.4% from the year-ago quarter’s reported number.

Adjusted operating income improved 4.8% to $193.5 million from the year-ago quarter’s level. Adjusted operating margin, as a percentage of revenues, was 28.3%, expanding 80 basis points.

Financial Update

The company exited the third quarter of 2024 with cash and cash equivalents of $1.23 billion compared with $1.95 billion in the prior-quarter end.

Net cash provided by operating activities, including discontinued operations, totaled $147.9 million compared with net cash used in operating activities of $33.5 million in the year-ago quarter.

2024 Guidance

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

For 2024, the company now expects its adjusted earnings per share in the range of $4.83-$4.87 compared with the prior guidance of $4.70-$4.80. Revenues are now anticipated to be in the band of $2.75-$2.77 billion.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Revvity has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Revvity has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Revvity is part of the Zacks Medical Services industry. Over the past month, Teladoc (TDOC), a stock from the same industry, has gained 19.7%. The company reported its results for the quarter ended September 2024 more than a month ago.

Teladoc reported revenues of $640.51 million in the last reported quarter, representing a year-over-year change of -3%. EPS of -$0.19 for the same period compares with -$0.35 a year ago.

For the current quarter, Teladoc is expected to post a loss of $0.20 per share, indicating a change of -17.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -8.9% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Teladoc. Also, the stock has a VGM Score of A.

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