Company Reports

For the second quarter, Revvity delivered 3% organic revenue growth and adjusted EPS from continuing operations of $1.41, above FactSet consensus of $1.21. Management also marginally raised guidance to 4%-5% organic growth and $5.30-$5.40 adjusted EPS.

Revvity, formerly PerkinElmer, has undergone a major transformation over the past decade. Following the 2023 divestiture of its applied, food, and enterprise services business, the firm rebranded as Revvity and now operates through two core segments, diagnostics and life sciences, with a strategic focus on enabling scientific breakthroughs and improving health outcomes.

On May 5, Revvity announced first-quarter results that included 7% reported growth to $711 million (above FactSet consensus of $704 million,) operating margin of 23.6% (above its expectation of 23% previously,) and adjusted EPS growth of 5% to $1.06 (or above consensus of $1.02.)

Life science stocks have been under pressure since late 2022, but with profits expected to rebound in the high single digits in 2026 on average and potentially accelerate even further in 2027-30 due to upcoming catalysts, we see growing momentum in the industry’s profit growth trajectory.

Revvity posted 2025 revenue of $2.86 billion, reflecting around 4% year-over-year growth. Management also provided 2026 guidance for 2%-3% organic revenue growth and adjusted earnings per share of $5.35-$5.45.

At an investor conference on Jan. 13, Revvity reported preliminary 2025 revenue of $2.86 billion, landing at the high end of its previously guided range, and indicated that adjusted EPS will exceed the prior guidance range of $4.90-$5.00.

Revvity reported third-quarter revenue of $699 million, up 2% year over year. Management reaffirmed the company's full-year organic revenue growth outlook of 2%-4% and slightly raised its adjusted EPS guidance to $4.90-$5.00.

Revvity, formerly PerkinElmer, has undergone a major transformation over the past decade. Following the 2023 divestiture of its applied, food, and enterprise services business, the firm rebranded as Revvity and now operates through two core segments, diagnostics and life sciences, with a strategic focus on enabling scientific breakthroughs and improving health outcomes.

Following a review of Revvity's recent returns on invested capital and the impact of its portfolio transformation since our last formal moat rating assessment in 2021, we are adjusting our views on the company.

Revvity reported second-quarter revenue of $720 million, up 4% year over year. Management has lowered the company's full-year 2025 organic revenue growth outlook to 2%-4% (from 3%-5 %) and reduced its adjusted EPS guidance to $4.85-$4.95. Shares declined 9% following the announcement.

Narrow-moat Revvity reported first-quarter results that were broadly in line with our expectations. Revenue grew 2% year over year despite ongoing macroeconomic headwinds in key end markets, and shares responded positively, rising about 2% in early trading. For full-year 2025, management raised its revenue outlook to a range of $2.83 billion-$2.87 billion to account for recent foreign currency fluctuations and reaffirmed its adjusted EPS guidance of $4.90-$5.00. We have slightly increased our 2025 top-line growth forecast to reflect these trends. However, this minor adjustment does not materially affect our fair value estimate, which remains at $162 per share. Revvity shares continue to look undervalued to us.

Over the past week, life science shares have experienced significant volatility related to a deepening trade war with China and as broader US tariffs were implemented and then paused for 90 days to allow time for negotiations. A pharmaceutical-specific tariff is also being considered.

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.

After significant business transformation activities in recent years, Revvity (formerly PerkinElmer) has been in a constant state of evolution since 2016 when the company made the transition into two new business segments, diagnostics, and discovery and analytical solutions, or DAS. With the recent divestment of its Applied, Food, and Enterprise Services business in early 2023, the company is operating under a new name and will focus solely on the life sciences and diagnostics business. We believe the firm's renewed strategic focus on improving its diagnostic product mix and life sciences business will maintain returns over cost of capital and produce tangible benefits for shareholders in the long run.

Narrow-moat Revvity reported strong third-quarter results, and management raised its full-year EPS guidance to $4.83 to $4.87, which appears to be driving shares higher, despite reducing its full-year revenue guidance due to decreased spending from its biotech customers. We are maintaining our $162 fair value estimate, as this slight adjustment to our near-term assumptions does not materially affect our valuation. The shares appear undervalued at current market prices, and we appreciate management’s aggressive stance on share repurchases, exemplified by its new $1 billion buyback program over the next two years.

Revvity turned in strong operating results this quarter, and management increased its full-year 2024 guidance on these trends. At first glance, mild tweaks to our near-term assumptions did not change our $162 fair value estimate. Shares remain undervalued, though, and management highlighted plans to boost its share repurchases at current prices, reflecting its desire to invest at an attractive price, which we appreciate.

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.

With myriad acquisitions in the past few years, Revvity (formerly PerkinElmer) has been in a constant state of evolution since 2016 when the company made the transition into two new business segments, diagnostics and discovery and analytical solutions, or DAS. With the recent divestment of its Applied, Food, and Enterprise Services business in early 2023, the company is operating under a new name and will focus solely on the life sciences and diagnostics business. We believe the firm's renewed strategic focus on improving its diagnostic product mix and life sciences business will maintain returns over cost of capital and produce tangible benefits for shareholders in the long run.

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.

Our $162 fair value estimate remains intact for narrow-moat Revvity, even as soft demand weighed on its third-quarter results and near-term outlook. Management again lowered full-year 2023 revenue and adjusted EPS forecasts on softer spending by biopharmaceutical clients that will likely persist through the first half of 2024. The moderate updates we made to our full-year 2023 revenue growth assumptions, in line with updated guidance and reflecting recent headwinds, were roughly offset by cash flows generated since our last valuation update, though, resulting in our unchanged valuation. With shares down over 15% on these weak results and guidance, we continue to highlight Revvity as significantly undervalued and continue to view the firm's long-term outlook as strong, despite its weak near-term prospects.