RVTY Rises as Q1 Earnings & Sales Beat Estimates, '25 Sales View Up

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]