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RVTY Posts Q2 Earnings & Sales Beat, Raises '25 Sales View
ZACKS· 2025-07-28 15:16
Core Viewpoint - Revvity, Inc. (RVTY) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $1.18, exceeding estimates, while revenue growth was noted despite margin contraction [1][8][10] Financial Performance - Adjusted EPS of $1.18 beat the Zacks Consensus Estimate of $1.14 by 3.5%, but declined 3.3% year-over-year [1] - Revenue reached $720.3 million, reflecting a 4.1% year-over-year increase and surpassing estimates by 1.2% [2][8] - GAAP EPS from continuing operations was 46 cents, slightly up from 45 cents in the prior-year period [1] Segment Analysis - Life Sciences segment generated revenues of $365.9 million, up 4% organically year-over-year, with adjusted operating income of $115 million, down 2.5% [3] - Diagnostics segment reported revenues of $354.4 million, a 3% increase year-over-year, with organic growth of 2% [3] Margin and Expense Analysis - Selling, general and administrative expenses totaled $248.5 million, down 1.2% year-over-year [5] - Research and development expenses increased by 10.7% to $53.3 million [5] - Adjusted operating income declined 3.6% to $191.8 million, with an adjusted operating margin of 26.6%, down 220 basis points [5] Cash Flow and Financial Position - Cash and cash equivalents at the end of Q2 2025 were $991.8 million, down from $1.14 billion in the previous quarter [6] - Net cash provided by operating activities was $134.3 million, compared to $158.6 million in the year-ago quarter [6] Guidance and Outlook - The company raised its revenue guidance for 2025 to a range of $2.84-$2.88 billion, while lowering its EPS outlook to $4.85-$4.95 [7][9] - The adjusted EPS guidance was revised down from $4.90-$5.00 [9] Strategic Developments - Recent product launches, including the IDS i20 analytical platform and Mimix reference standards, are expected to drive additional sales [13] - A favorable ruling in litigation with Cloud Software Group ensures continued access to essential software, supporting operational continuity [14] Market Reaction - RVTY shares fell 5.9% in pre-market trading, attributed to the lowered EPS outlook, with a year-to-date decline of 7.1% compared to the industry’s 5.2% drop [11]