Revvity(RVTY)2025-04-28 21:04Financial Data and Key Metrics Changes - The company generated revenue of 1.01, exceeding expectations of 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 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 5 [19][37] - The company anticipates a gross impact of approximately 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]