Revvity Earnings: Key Markets Still Uncertain, But Some Relief Expected Soon After COVID-19 Reset

Revvity's weak second quarter came in about as expected, even when including continued slowing of demand by biopharmaceutical customers in China that weighed on revenue growth. The prolonged impediment to topline performance increases uncertainty heading into the second half of 2023 and caused management to slightly decrease full-year guidance from prior projections (down 3% at the midpoint for both revenue and adjusted earnings per share). We have slightly reduced our full-year forecasts to reflect that uncertainty, roughly in line with updated guidance, but those changes did not materially affect our $162 fair value estimate, which is based on longer-term assumptions for the narrow-moat firm. Shares remain moderately undervalued at current prices.