Revvity (RVTY) 2025 Conference Summary Company Overview - **Company**: Revvity (RVTY) - **Date**: May 13, 2025 - **Industry**: Life Sciences Tools and Diagnostics Key Points 1. Q1 Performance and Guidance - The first quarter showed solid performance despite a different macro environment than initially assumed for 2025 guidance [4][5] - The diagnostics and software businesses performed exceptionally well, contributing to the overall strength of the portfolio [4][5] - The company maintained full-year guidance despite a weaker macro backdrop due to prudent initial guidance [5] 2. Tariff Impact and Mitigation Strategies - Gross tariff headwinds were estimated at $135 million, with a net impact of approximately $0.12 on EPS after operational mitigation [6][12] - The majority of tariff impacts are expected in the second quarter, with operational mitigation strategies being implemented [6][12] - The company has a dual manufacturing strategy to enhance supply chain resiliency, including a GMP facility in San Diego and another outside the US [10] 3. Academic and Government Market Exposure - Academic and government customers account for 12% of global revenue, with over 5% in the US [21] - There is cautiousness in these segments due to uncertainties around indirect expense reimbursements and NIH funding levels [22][24] 4. Pharma and Biotech Market Trends - The pharma and biotech sectors showed positive growth in Q1, but there is uncertainty due to macroeconomic factors and tariffs [28] - Instrumentation sales are expected to face continued pressure, particularly from mid and large-sized pharma customers [29][30] 5. Geographic Performance - China represents 16% of total revenue, with diagnostics showing high single-digit growth while life sciences experienced a slight decline [34] - The company anticipates continued choppiness in the China life sciences market but modest growth in diagnostics [34][35] 6. Software Business Strength - The software business is highlighted as a major area of strength, with new product launches and a focus on large molecule capabilities [48][49] - The company is expanding into new customer groups and markets, such as material science, which has shown good traction [49] 7. Margin Expectations and Cost Management - The company expects balanced margin expectations for the year, with temporary belt-tightening measures in place to mitigate tariff impacts [50][51] - There are no plans for additional structural cost reductions, but ongoing monitoring will occur [51] 8. Capital Allocation and M&A Strategy - Revvity has adopted a balanced approach to capital deployment, including share buybacks and selective M&A opportunities [55][56] - The company is cautious about M&A in the current market, noting that private companies are not in a rush to sell despite lower valuations [57][59] 9. Underappreciated Aspects of Revvity - The company’s differentiated portfolio and execution capabilities are not fully recognized in the market [61][62] - There is potential for margin expansion that has yet to be demonstrated due to current market pressures [62][63] 10. Future Outlook - The company remains optimistic about its long-term growth potential, particularly in the reagents business and software capabilities [41][48] - Continued execution and clarity in macroeconomic conditions are essential for demonstrating the company's margin expansion opportunities [63] This summary encapsulates the key insights and data points from the Revvity conference, providing a comprehensive overview of the company's current performance, challenges, and strategic outlook.

Industry Overview - The life sciences industry has faced significant challenges over the past couple of years, with ongoing speculation about an impending recovery since 2023 [1] - Reports of potential recovery indicators have been frequent, but the industry has yet to see a substantial turnaround [1] Analyst Background - The analyst has a decade of experience in hedge fund analysis and has conducted extensive research in Latin American markets, focusing on countries like Mexico, Colombia, and Chile [2] - Specialization includes identifying high-quality compounders and growth stocks at reasonable prices in both the US and developed markets [2]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) Revvity, Inc. reports total revenues of $664.8 million for the first quarter of 2025, a 2% increase year-over-year, with net income rising to $42.2 million from $26.0 million in the prior year. Diluted EPS from continuing operations was $0.35. The balance sheet remains stable with total assets of $12.36 billion. Cash flow from operations was strong at $128.2 million, though slightly lower than the previous year [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 30, 2025, Revvity reported total revenues of $664.8 million, up from $649.9 million in the same period of 2024. Operating income significantly increased to $72.2 million from $44.1 million year-over-year. Net income for the quarter was $42.2 million, or $0.35 per diluted share, compared to $26.0 million, or $0.21 per diluted share, in the prior-year period Q1 2025 vs Q1 2024 Statement of Operations Highlights | Metric | Three Months Ended March 30, 2025 | Three Months Ended March 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $664,762 | $649,920 | +2.3% | | **Operating Income from Continuing Operations** | $72,230 | $44,116 | +63.7% | | **Income from Continuing Operations** | $41,669 | $28,696 | +45.2% | | **Net Income** | $42,237 | $26,013 | +62.4% | | **Diluted EPS (Continuing Operations)** | $0.35 | $0.23 | +52.2% | | **Diluted EPS (Net Income)** | $0.35 | $0.21 | +66.7% | (In thousands, except per share data) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The company reported a comprehensive income of $121.9 million for the first quarter of 2025, a significant turnaround from a comprehensive loss of $22.6 million in the same period of 2024. This change was primarily driven by a positive foreign currency translation adjustment of $79.7 million Q1 2025 vs Q1 2024 Comprehensive Income | Metric | Three Months Ended March 30, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Income | $42,237 | $26,013 | | Foreign currency translation adjustments | $79,654 | $(48,927) | | **Comprehensive Income (Loss)** | **$121,891** | **$(22,649)** | (In thousands) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2025, Revvity's balance sheet showed total assets of $12.36 billion, a slight decrease from $12.39 billion at year-end 2024. Cash and cash equivalents stood at $1.14 billion. Total liabilities were stable at $4.72 billion, and total stockholders' equity was $7.64 billion Balance Sheet Highlights | Metric | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,137,620 | $1,163,396 | | Total current assets | $2,317,938 | $2,349,608 | | Goodwill | $6,511,488 | $6,463,619 | | **Total assets** | **$12,360,724** | **$12,392,478** | | Total current liabilities | $648,187 | $653,100 | | Long-term debt | $3,168,384 | $3,150,476 | | **Total liabilities** | **$4,723,594** | **$4,725,604** | | **Total stockholders' equity** | **$7,637,130** | **$7,666,874** | (In thousands) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was $128.2 million, compared to $147.6 million in the prior-year period. Net cash used in investing activities was $6.4 million. Financing activities used $163.7 million, primarily due to $153.6 million in common stock repurchases. The quarter ended with a total cash position of $1.14 billion Q1 2025 vs Q1 2024 Cash Flow Summary | Activity | Three Months Ended March 30, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $128,155 | $147,563 | | Net cash used in investing activities | $(6,378) | $(18,181) | | Net cash used in financing activities | $(163,664) | $(35,013) | | **Net (decrease) increase in cash** | **$(25,765)** | **$85,092** | (In thousands) - The significant increase in cash used for financing activities was driven by common stock repurchases totaling **$153.6 million** in Q1 2025, compared to **$10.8 million** in Q1 2024[22](index=22&type=chunk)[113](index=113&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the basis of presentation, revenue disaggregation, discontinued operations from the 2023 sale of the Applied, Food and Enterprise Services businesses, and segment reporting changes effective in 2025. Key details include a stock repurchase program with $707.2 million remaining, a quarterly dividend of $0.07 per share, and total debt of $3.17 billion. No goodwill impairment was recorded - Effective at the beginning of fiscal year 2025, the company integrated its Applied Genomics business into the Life Sciences segment. Prior period financial information has been reclassified for consistent comparison[41](index=41&type=chunk)[42](index=42&type=chunk) - During Q1 2025, the company repurchased **1.32 million shares** of common stock for **$150.0 million** under its Repurchase Program. As of March 30, 2025, **$707.2 million** remained available for future repurchases[48](index=48&type=chunk) - The company declared a quarterly cash dividend of **$0.07 per share** for Q1 2025 and subsequently for Q2 2025[51](index=51&type=chunk) - Total long-term debt stood at **$3.17 billion** as of March 30, 2025. In January 2025, the company replaced its credit facility with a new **$1.5 billion** senior unsecured revolving credit facility expiring in 2030[37](index=37&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 2% revenue increase to $664.8 million in Q1 2025, driven by growth in both the Diagnostics (3%) and Life Sciences (1%) segments. Gross margin improved by 186 basis points to 56.5% due to higher volume and favorable mix, while operating margin expanded from 7% to 11%. The company highlights investments in new products and digital capabilities, and discusses its liquidity position, including a new $1.5 billion credit facility and an ongoing stock repurchase program [Overview](index=22&type=section&id=Overview) In Q1 2025, Revvity's revenue grew 2% to $664.8 million, with the Diagnostics segment up 3% and Life Sciences up 1%. The growth in Diagnostics was driven by Immunodiagnostics and Reproductive Health, while Life Sciences growth was led by Software revenue. Consolidated gross margins increased by 186 basis points, and operating margins expanded from 7% to 11% year-over-year Q1 2025 Performance Summary | Metric | Q1 2025 vs Q1 2024 | Key Drivers | | :--- | :--- | :--- | | Overall Revenue | +2% ($664.8M) | Growth in both segments | | Diagnostics Segment Revenue | +3% | Increased demand in Immunodiagnostics and Reproductive Health | | Life Sciences Segment Revenue | +1% | Growth in Software, offset by decrease in Life Sciences Solutions | | Gross Margin | +186 bps | Higher sales volume, productivity, favorable product mix | | Operating Margin | 11% (from 7%) | Gross margin expansion and cost containment | [Consolidated Results of Continuing Operations](index=23&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Revenue for Q1 2025 increased by 2% to $664.8 million. Cost of revenue decreased by 2%, leading to a gross margin improvement to 56.5%. SG&A expenses fell 4% to $249.7 million, while R&D expenses rose 6% to $53.6 million, reflecting continued investment in innovation. The effective tax rate increased to 20.5% from 16.9% in the prior year - Cost of revenue as a percentage of revenue decreased from **45.4%** to **43.5%**, resulting in a gross margin increase of **186 basis points** to **56.5%**, primarily due to higher sales volume, productivity, and favorable product mix[89](index=89&type=chunk) - The company estimates that recently enacted tariffs could increase its gross cost of revenue by approximately **$135 million** for the fiscal year, but mitigation actions are expected to limit the operating income impact to approximately **$20 million**[90](index=90&type=chunk) - R&D expenses increased by **6%** to **$53.6 million**, representing **8.1%** of revenue, driven by investments in new product development[93](index=93&type=chunk) - The effective tax rate for Q1 2025 was **20.5%**, up from **16.9%** in Q1 2024, primarily due to projected higher income in higher tax rate jurisdictions. The company expects a full-year effective tax rate of approximately **20%**[96](index=96&type=chunk) [Reporting Segment Results of Continuing Operations](index=24&type=section&id=Reporting%20Segment%20Results%20of%20Continuing%20Operations) In Q1 2025, the Life Sciences segment revenue grew 1% to $340.4 million, with operating income up 5% to $105.7 million. The Diagnostics segment revenue increased 3% to $324.4 million, but its operating income decreased 3% to $74.0 million due to investments in growth initiatives Q1 2025 Segment Performance | Segment | Revenue (Q1 2025) | Revenue Change (YoY) | Operating Income (Q1 2025) | Operating Income Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | Life Sciences | $340.4M | +1% | $105.7M | +5% | | Diagnostics | $324.4M | +3% | $74.0M | -3% | - Life Sciences revenue growth was driven by a **$9.0 million** increase in Software revenue, partially offset by a **$5.2 million** decrease in Life Sciences Solutions revenue[97](index=97&type=chunk) - Diagnostics revenue growth was driven by an **$8.9 million** increase in Immunodiagnostics and a **$2.1 million** increase in Reproductive Health[99](index=99&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 30, 2025, Revvity had $1.14 billion in cash and cash equivalents and $1.5 billion available under a new credit facility. The company expects internal operations to fund operating expenses, capital expenditures, and dividends for the foreseeable future. Key uses of cash include debt service, potential acquisitions, and share repurchases under a $1.0 billion program, of which $707.2 million remained available - The company's principal sources of funds are internal operations, a **$1.5 billion** senior unsecured revolving credit facility, and access to debt markets[103](index=103&type=chunk)[104](index=104&type=chunk) - A stock repurchase program authorized up to **$1.0 billion**. As of March 30, 2025, **$707.2 million** remained available for repurchases[106](index=106&type=chunk) - Net cash from operating activities decreased to **$134.1 million** in Q1 2025 from **$150.1 million** in Q1 2024, primarily due to timing of collections and payments[111](index=111&type=chunk) - In January 2025, the company replaced its prior credit facility with a new **$1.5 billion** senior unsecured revolving credit facility available through January 7, 2030[116](index=116&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, including changes in interest rates and currency exchange rates. It uses derivative instruments to manage volatility. The company states that its market risks have not materially changed from the disclosures provided in its 2024 Form 10-K - The company's market risks, primarily related to interest rates and foreign currency exchange rates, have not materially changed from the disclosures in its Annual Report on Form 10-K for the fiscal year ended December 29, 2024[119](index=119&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 30, 2025, and concluded they were effective at a reasonable assurance level. There were no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of March 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[124](index=124&type=chunk) - No changes occurred in the company's internal control over financial reporting during the first fiscal quarter of 2025 that materially affected, or are reasonably likely to materially affect, these controls[125](index=125&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various claims and legal proceedings in the ordinary course of business. Management has established accruals for probable and estimable losses and believes that the ultimate resolution of these matters will not have a material adverse effect on its financial statements - Revvity is involved in various legal proceedings and has established accruals for potential losses. Management does not expect the outcomes to have a material adverse effect on the company's financial condition[128](index=128&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company outlines significant risks that could impact its business. These include dependency on market conditions and government funding, global economic and political instability, failure to innovate, challenges in executing M&A, intense competition, supply chain disruptions, IT system breaches, and potential impairment of its $9.1 billion in intangible assets. Other risks involve intellectual property protection, regulatory compliance (FDA, data privacy), foreign operations, substantial debt levels with restrictive covenants, and stock price volatility - Business operations are sensitive to declines in customer markets, changes in government funding, and global economic conditions, including tariffs and political conflicts[129](index=129&type=chunk)[130](index=130&type=chunk) - The company faces risks from rapid technological change and must successfully introduce new products to remain competitive. Failure to do so could lead to market share loss[133](index=133&type=chunk) - As of March 30, 2025, the company had **$9.1 billion** of net intangible assets, including goodwill, which are subject to impairment risk if business conditions deteriorate[149](index=149&type=chunk) - The company has a substantial amount of debt, which includes restrictive covenants that may limit business activities. Failure to comply could result in debt acceleration[164](index=164&type=chunk)[166](index=166&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, Revvity repurchased a total of 1,355,665 shares of its common stock at an average price of $113.28 per share. Of this total, 1,324,629 shares were repurchased under the publicly announced stock repurchase program. As of March 30, 2025, approximately $707.2 million remained available for repurchase under this program Q1 2025 Stock Repurchase Activity | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased Under Program | Remaining Authorization | | :--- | :--- | :--- | :--- | :--- | | Q1 ended Mar 30, 2025 | 1,355,665 | $113.28 | 1,324,629 | $707,209,819 | - The company repurchased **31,036 shares** for **$3.6 million** to satisfy tax withholding obligations related to employee equity awards, separate from the main repurchase program[175](index=175&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, three executive officers, Joel S. Goldberg, Prahlad Singh, and Tajinder S. Vohra, adopted Rule 10b5-1 trading arrangements for future sales of company stock. No directors or officers terminated any such arrangements during the quarter - Three Section 16 officers, including the CEO, adopted Rule 10b5-1 trading plans during the quarter ended March 30, 2025[177](index=177&type=chunk)[178](index=178&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's articles of organization, by-laws, a new credit agreement, and certifications by the CEO and CFO as required by the Sarbanes-Oxley Act. It also includes the Inline XBRL documents

Financial Data and Key Metrics Changes - The company generated revenue of $665 million in Q1 2025, resulting in 4% organic growth, with a 1% headwind from foreign exchange [27][31] - Adjusted EPS for the quarter was $1.01, exceeding expectations of $0.93 to $0.95 [7][29] - Adjusted operating margins were reported at 25.6%, slightly up year-over-year and above expectations [28] Business Line Data and Key Metrics Changes - Life Sciences segment revenue was $340 million, up 1% reported and 2% organically, with low single-digit growth in pharma biotech customers and a decline in academic and government customers [32] - Diagnostics segment revenue reached $324 million, up 3% reported and 5% organically, driven by high single-digit growth in immunodiagnostics [33] Market Data and Key Metrics Changes - The Americas and Europe experienced mid-single-digit growth, while Asia saw low single-digit growth, with China also growing in low single digits [31] - U.S. academic customers, representing over 5% of total revenue, showed cautious spending due to uncertainties in funding [23][24] Company Strategy and Development Direction - The company is focused on maintaining strong organic growth and operational agility to navigate macroeconomic challenges [5][20] - A recent expanded alliance with Genomics England aims to enhance newborn genomic sequencing capabilities, positioning the company as a leader in this area [9] - The software business, representing about 8% of total revenue, grew over 20% organically in Q1 and is expected to continue strong growth [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience and ability to adapt to changing market conditions, reaffirming a full-year adjusted EPS outlook of $4.9 to $5 [19][37] - The company anticipates a gross impact of approximately $135 million from tariffs, but expects to mitigate most of this through proactive measures [18][19] Other Important Information - The company repurchased $154 million of its shares in Q1, reducing the outstanding share count to 119.4 million [7][29] - The net debt to adjusted EBITDA leverage ratio was reported at 2.4 times, with all debt being fixed rate [30] Q&A Session Summary Question: Can you talk about the tariff impact and what products are affected? - Management indicated that they have been proactive in adjusting their supply chain to mitigate the $135 million gross tariff impact, focusing on products sold from the U.S. to China [41][43] Question: What are the expectations for the Life Sciences segment? - The Life Sciences segment is expected to see low single-digit growth, with instrumentation under pressure but solid growth in reagents [45][48] Question: How is the company managing its exposure in China? - The company expects low single-digit growth in China, with a slight decline in Life Sciences and mid-single-digit growth in Diagnostics [56] Question: What is the outlook for the software business? - The software business is expected to continue strong double-digit growth, with a focus on expanding into new markets [62][90] Question: What are the long-term margin expectations? - Long-term operating margin expectations remain unchanged, with a focus on SG&A volume leverage as growth continues [104]

Core Viewpoint - Revvity, Inc. reported strong first-quarter 2025 results with adjusted EPS of $1.01, exceeding estimates and showing year-over-year improvement [1][9] Financial Performance - Adjusted EPS of $1.01 beat the Zacks Consensus Estimate of 96 cents by 5.2% and improved 3.1% from the previous year [1] - Revenues reached $664.7 million, up 2.3% year over year and 4% organically, surpassing the Zacks Consensus Estimate by 0.4% [2] - GAAP EPS from continuing operations was 35 cents, compared to 21 cents in the prior-year period [1] Segment Analysis - Life Sciences segment revenues totaled $340 million, up 2% organically from the previous year, with adjusted operating income of $106 million, a 5% increase [3] - Diagnostics segment revenues were $324 million, reflecting a 3% year-over-year increase, with a 5% organic growth [3] Margin and Expense Analysis - Selling, general and administrative expenses were $249.7 million, down 4.2% year over year, while research and development expenses were $53.6 million, down 6.4% [5] - Adjusted operating income improved 2.5% to $169.9 million, with an adjusted operating margin of 25.6%, expanding 10 basis points [5] Financial Position - Cash and cash equivalents at the end of Q1 2025 were $1.14 billion, slightly down from $1.16 billion at the end of the previous quarter [6] - Net cash used in operating activities was $134.1 million, compared to $150.1 million in the year-ago quarter [6] 2025 Guidance - The company reiterated its earnings outlook, expecting adjusted EPS in the range of $4.90-$5.00, and updated revenue guidance to $2.83-$2.87 billion [7] - The previous revenue guidance was $2.80-$2.85 billion, with the Zacks Consensus Estimate for EPS and revenues at $4.93 and $2.82 billion, respectively [7] Market Reaction and Outlook - Shares of RVTY rose 5.9% in pre-market trading, although the stock has declined 14.6% year-to-date compared to the industry's 1.6% decline [9] - The company is well-positioned to navigate challenges and capitalize on opportunities, with solid execution across both segments [10] Recent Developments - The launch of EUROIMMUN's Anti-Measles Virus ELISA 2.0 in Europe is expected to drive additional sales [11] - FDA approval for the Auto-Pure 2400 liquid handling platform with the T-SPOT.TB test will facilitate commercialization in the U.S. market [12]

Financial Performance - Q1 2025 - Revenue reached $665 million, showing a 2% year-over-year increase[10] - Organic revenue growth was 4%, while foreign exchange had a negative impact of 1%[10] - Adjusted operating margin stood at 25.6%, a slight increase of 5 basis points year-over-year[10] - Adjusted EPS was $1.01, representing a 4% year-over-year increase[10] - Free cash flow was $118 million, with a free cash flow percentage of adjusted net income at 97%[10] Segment Performance - Q1 2025 - Life Sciences revenue was $340 million, with organic growth of 2%[12, 13] - Diagnostics revenue was $324 million, with organic growth of 5%[15, 16] Full Year 2025 Guidance - Revenue is projected to be between $2.83 billion and $2.87 billion, representing reported growth of 3% to 4%[17] - Organic revenue growth is expected to be between 3% and 5%[17] - Adjusted operating margin is guided to be between 27.9% and 28.1%[17] - Adjusted EPS is projected to be between $4.90 and $5.00[17]

Core Insights - Revvity (RVTY) reported revenue of $664.76 million for the quarter ended March 2025, reflecting a 2.3% increase year-over-year and a surprise of +0.39% over the Zacks Consensus Estimate of $662.17 million [1] - The company's EPS for the quarter was $1.01, up from $0.98 in the same quarter last year, resulting in an EPS surprise of +5.21% compared to the consensus estimate of $0.96 [1] Revenue and Earnings Performance - Organic revenue growth in Life Sciences was 2%, below the average estimate of 6.1% from three analysts [4] - Total organic revenue growth was reported at 4%, exceeding the average estimate of 3.6% from three analysts [4] - Organic revenue growth in Diagnostics was 5%, significantly higher than the average estimate of 1.5% from three analysts [4] Sales Metrics - Net Sales in Life Sciences reached $340.40 million, slightly above the average estimate of $338.13 million from three analysts, with a year-over-year change of +12.3% [4] - Net Sales in Diagnostics were reported at $324.37 million, slightly below the average estimate of $324.78 million from three analysts, representing a year-over-year decline of -6.6% [4] Stock Performance - Revvity's shares have returned -10.7% over the past month, compared to a -4.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Revvity Inc. reported first-quarter sales of $664.76 million, a decrease from $709.07 million, but exceeding the consensus estimate of $661.18 million [1] - The company achieved an adjusted EPS of $1.01, surpassing the consensus of 95 cents [4] - Adjusted operating income was $170 million, compared to $166 million for the same period last year [4] - The adjusted operating profit margin was 25.6%, slightly up from 25.5% year-over-year [4] Guidance and Forecast - Revvity affirmed its fiscal year 2025 adjusted EPS guidance of $4.90-$5.00, compared to the consensus of $4.94 [2] - The company raised its 2025 sales guidance from $2.8 billion to $2.85 billion, exceeding the consensus of $2.83 billion [2] - The guidance reflects a -0.5% impact from foreign currency exchange and assumes 3%-5% organic revenue growth [2] - The company forecasts a 2025 adjusted operating margin of 27.9%-28.1% [3] Segment Performance - The life sciences segment revenue increased by 1% to $340 million [4] - Organic revenue grew by 2%, while diagnostics sales rose 3% year-over-year to $324 million [4] - Organic diagnostics revenue increased by 5% [4] Market Reaction - Revvity stock rose 5% to $99 during the premarket session following the earnings report [3]

Financial Performance - GAAP earnings per share for Q1 2025 was $0.35, up from $0.21 in Q1 2024, representing a 66.7% increase[4] - Revenue for Q1 2025 was $665 million, a 2% increase from $650 million in Q1 2024, with organic growth of 4%[4][7] - Adjusted earnings per share from continuing operations for Q1 2025 was $1.01, compared to $0.98 in the same period last year, reflecting a 3.1% increase[5] - The company reported adjusted operating income of $170 million for Q1 2025, slightly up from $166 million in Q1 2024[5] - Net income for the three months ended March 30, 2025, was $42,237,000, compared to $26,013,000 for the same period in 2024[27] - Adjusted operating profit margin for Q1 2025 was 25.6%, slightly up from 25.5% in the same period last year[5] - Revenue for the three months ended March 30, 2025, was $664,762,000, an increase of 2% compared to $649,920,000 for the same period in 2024[22] - Adjusted operating income for the same period was $169,911,000, representing an operating margin of 25.6%, slightly up from 25.5% in the prior year[22] Revenue Segments - The Life Sciences segment reported Q1 2025 revenue of $324 million, a 3% increase year-over-year, with organic revenue growth of 5%[6] - The Diagnostics segment achieved Q1 2025 revenue of $340 million, a 1% increase from $337 million in Q1 2024, with organic growth of 2%[8] - The Life Sciences segment generated revenue of $340,395,000, while the Diagnostics segment generated $324,367,000 for the three months ended March 30, 2025[22] Guidance and Projections - Full year 2025 revenue guidance has been raised to a range of $2.83-$2.87 billion, with organic growth guidance reaffirmed at 3-5%[10] - The company reaffirmed its adjusted EPS guidance for the full year 2025 at $4.90-$5.00[10] - Projected organic revenue growth for FY 2025 is estimated to be between 3% and 5%[31] Assets and Liabilities - The company reported total assets of $12,360,724,000 as of March 30, 2025, a slight decrease from $12,392,478,000 at the end of 2024[24] - Cash and cash equivalents at the end of the period were $1,138,687,000, down from $1,164,452,000 at the beginning of the period[28] - Total liabilities were reported at $4,723,594,000, with long-term debt amounting to $3,168,384,000[24] Non-GAAP Measures - The company uses "adjusted earnings per share from continuing operations" to exclude various costs, including amortization of intangible assets and acquisition-related expenses, to better reflect ongoing performance[41] - Management believes that amortization of intangible assets does not accurately reflect ongoing operations, as these charges are fixed post-acquisition[42] - Debt extinguishment costs are excluded from non-GAAP measures as they do not reflect the performance of ongoing operations[42] - Significant litigation matters and settlements are not included in adjusted earnings as they do not represent ongoing operational performance[45] - The company excludes asset impairments from non-GAAP measures, believing they do not accurately reflect ongoing operations[45] - Changes in the value of investments are excluded from adjusted earnings, as management believes these do not reflect ongoing operational performance[45] - The impact of foreign currency changes is excluded to avoid obscuring underlying trends in performance[45] - Management uses non-GAAP measures to evaluate operating performance and communicate financial results to the Board of Directors[47] - The company emphasizes that non-GAAP measures should be viewed alongside GAAP financial measures due to their limitations[46] - Non-GAAP measures may differ from similar measures used by other companies, highlighting the need for careful comparison[46] Operational Performance - The company emphasized strong execution and adaptability to macroeconomic changes as key drivers of performance in Q1 2025[6] - Organic revenue growth from continuing operations was 4%, after accounting for a -1% impact from foreign exchange rates[30] - The company incurred $10,586,000 in significant litigation matters and settlements during the quarter[22]

Core Viewpoint - Revvity (RVTY) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1][2]. Earnings Performance - For the last reported quarter, Revvity achieved earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.36 per share by 4.41% [2]. - In the previous quarter, the company reported earnings of $1.28 per share against an expected $1.13 per share, resulting in a surprise of 13.27% [2]. Earnings Estimates and Predictions - Recent estimates for Revvity have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Revvity stands at +0.52%, reflecting increased analyst optimism regarding its near-term earnings potential [8]. Zacks Rank and Success Rate - Revvity holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, suggests a high probability of beating consensus estimates, with historical data indicating nearly 70% success in such scenarios [6][8]. Upcoming Earnings Report - The next earnings report for Revvity is anticipated to be released on April 28, 2025 [8].