Revvity, Inc. RVTY is slated to report third-quarter 2024 results on Nov. 04, before market open.

In the last reported quarter, the company delivered a positive earnings surprise of 7.96%. RVTY’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 5.02%.

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Q3 Estimates

The Zacks Consensus Estimate for revenues is pegged at $677.6 million, up 1% compared with the prior-year quarter. The consensus mark for earnings is pinned at $1.13 per share, indicating a deterioration of 4.2% from the prior-year quarter.

Diagnostics Segment

Revvity’s Diagnostics business grew 3% organically in the last reported quarter on the back of strong immunodiagnostics business. Newborn Screening also showed strong growth. Management remains optimistic that in the third quarter the recent pressures on the newborn business in China will subside. During the second quarter, the company’s Software business also performed better than expected. However, management believes that its signal Software business is likely to have faced some competition dynamics in the third quarter before returning to robust growth in the fourth quarter.

Per management, the diagnostic segment is likely to witness volatility related to volume-based procurement in China. Applied Genomics, which accounts for roughly a quarter of the Diagnostics segment, declined during the last reported quarter and the trend is likely to continue. This is expected to have affected the segment in the to-be-reported quarter as well.

Our estimate for the Diagnostic segment’s revenues is pegged at $365 million, flat year over year.

Life Sciences Segment

In the second quarter of 2024, the Life Sciences segment’s revenues declined 6% organically year over year due to lower demand from pharma biotech customers. This trend is likely to have continued in the quarter to be reported. Our estimate for this segment’s revenues is pinned at $313 million.

In the second quarter of 2024, RVTY witnessed a rise in adjusted operating margin compared to the first quarter. Productivity initiatives, improved pricing and strict cost control measures are likely to have benefited RVTY’s third-quarter gross and operating margins as well. New product introductions might have improved product mix and, thereby, gross margin.

Revvity Inc. Price and EPS Surprise

Revvity Inc. price-eps-surprise | Revvity Inc. Quote

Other Factors to Consider

In April, Revvity also announced the launch of the Auto-Pure 2400 liquid handler from Allsheng for use with its T-SPOT.TB test. The solution, which has an intuitive software user interface, is expected to simplify lab workflows.

The latest product is expected to significantly boost Revvity’s Diagnostics segment and solidify its foothold in the infectious diseases space. Per the second-quarter earnings call, management expects to receive FDA clearance for this new offering later this quarter. The product has launched in Europe and is likely to launch in the United States and China upon receiving regulatory clearance.                    

Per the second-quarter earnings call, in the third quarter, management anticipates its organic growth to improve relative to the first half of the year and grow in the low-single digits year over year. The FX is currently expected to be a headwind of approximately 100 basis points. RVTY expects to hold the operating expenses relatively flat sequentially, resulting in adjusted operating margins of approximately 28%.

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).

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post earnings beat this reporting cycle.

Masimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to release third-quarter 2024 results on Nov. 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%. The Zacks Consensus Estimate for EPS implies an improvement of 33.3% from the year-ago reported figure.

ACADIA Pharmaceuticals ACAD has an Earnings ESP of +38.39% and a Zacks Rank #3 at present. The company is expected to release third-quarter 2024 results on Nov. 6.

ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 42.37%. The Zacks Consensus Estimate for EPS implies a surge 127.5% from the year-ago figure.

Privia Health Group PRVA has an Earnings ESP of +27.27% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2024 results on Nov. 7.

PRVA’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 44.17%. The third-quarter EPS is expected to improve 20% from the year-earlier reported figure.

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