Revvity Earnings: Despite Fourth-Quarter Strength, Market Weakness Persists, Limiting 2024 Guidance

Narrow-moat Revvity delivered full-year 2023 results that were slightly better than anticipated, due to a solid fourth-quarter performance amid continued industry headwinds. We expect weaker demand from biopharmaceutical customers and challenging macroeconomic conditions to carry on into the first half of 2024. As a result, we slightly lower our prior full-year 2024 revenue assumptions to be more in line with management’s guidance of 1% to 3% growth. The stronger 2023 result and weaker 2024 expectations largely offset in our model, so we retain our $162 fair value estimate. At current prices, shares remain undervalued relative to our maintained valuation.