Revvity Earnings: 2024 Performance Reflects Slow Recovery as Market Weakness Persists

Narrow-moat Revvity reported full-year 2024 results that were largely in line with our expectations. However, the slower-than-expected recovery in pharmaceutical spending and unexpected foreign-currency headwinds prompted management to issue 2025 guidance that was slightly below our estimates. We have adjusted our forecasts to better align with the more gradual recovery suggested by management’s outlook for total revenue of $2.80 billion-$2.85 billion and adjusted earnings per share of $4.90-$5.00. Despite these changes, we are maintaining our $162 fair value estimate, as this slight adjustment to our near-term assumptions does not materially affect our valuation, which is based on longer-term estimates that remain roughly intact. Revvity shares appear undervalued at current market prices.