Revvity Earnings: 2024 Guidance Trim Reflects Lingering Market Challenges, but No FVE Change

We maintain our $162 fair value estimate for narrow-moat Revvity, given that its soft first-quarter result was largely as anticipated. Revenue declined 4% year over year on continued macroeconomic pressure in key end markets and a tough comparable period. We slightly lowered our top-line growth assumption for full-year 2024 to about 2%, near the midpoint of management's updated guidance, based on a pickup in demand from life sciences clients in the second half of 2024. This top-line adjustment is partially offset by cash flows generated since our last update, leading to our reaffirmed valuation. Shares still look undervalued.