Revvity, Inc. RVTY reported third-quarter 2024 adjusted earnings per share (EPS) 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 EPS from continuing operations was 76 cents compared with 26 cents in the prior-year period. However, GAAP EPS in the reported quarter was 77 cents, which includes a loss of 1 cent per share from discontinued operations.

Revenue Details

Based in Waltham, MA, this leading MedTech 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

Revvity reports under two operating segments — Life Sciences and Diagnostics.

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.

Revvity Inc. Price, Consensus and EPS Surprise

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

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 EPS 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. The Zacks Consensus Estimate for EPS and revenues is pegged at $4.75 per share and $2.78 billion, respectively.

RVTY’s Zacks Rank & Stocks to Consider

RVTY carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the broader medical space are Addus HomeCare ADUS, Quest Diagnostics DGX and RadNet RDNT. While Addus HomeCare sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and RadNet carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Addus HomeCare has an estimated long-term growth rate of 12.1%. ADUS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 11.5%.

Addus HomeCare shares have rallied 85.5% compared with the industry's 16.9% growth year to date.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 42% compared with the industry's 14.9% growth year to date.

RadNet’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.

RDNT's shares have surged 93.7% year to date compared with the industry’s 14.8% growth.

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