Q3 Earnings Highlights: Revvity (NYSE:RVTY) Vs The Rest Of The Research Tools & Consumables Stocks

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Revvity (NYSE:RVTY) and the rest of the research tools & consumables stocks fared in Q3.

The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.

The 10 research tools & consumables stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 1.3% below.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Revvity (NYSE:RVTY)

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE:RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Revvity reported revenues of $698.9 million, up 2.1% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ full-year EPS guidance estimates but organic revenue in line with analysts’ estimates.

“We performed well during the third quarter as a number of key innovations and strategic partnerships have begun to come to fruition,” said Prahlad Singh, president and chief executive officer of Revvity.

Revvity pulled off the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $98.23.

Is now the time to buy Revvity? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Sotera Health Company (NASDAQ:SHC)

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Sotera Health Company reported revenues of $311.3 million, up 9.1% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ full-year EPS guidance estimates and a solid beat of analysts’ organic revenue estimates.

The market seems content with the results as the stock is up 4.1% since reporting. It currently trades at $17.29.

Is now the time to buy Sotera Health Company? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Avantor (NYSE:AVTR)

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE:AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a slight miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Avantor delivered the slowest revenue growth in the group. As expected, the stock is down 25% since the results and currently trades at $11.32.

Read our full analysis of Avantor’s results here.

Agilent (NYSE:A)

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE:A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Agilent reported revenues of $1.86 billion, up 9.4% year on year. This number topped analysts’ expectations by 1.5%. It was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.

Agilent delivered the fastest revenue growth among its peers. The stock is down 9.8% since reporting and currently trades at $138.75.

Read our full, actionable report on Agilent here, it’s free for active Edge members.

Thermo Fisher (NYSE:TMO)

With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE:TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.

Thermo Fisher reported revenues of $11.12 billion, up 4.9% year on year. This result surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also logged a decent beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 3.2% since reporting and currently trades at $575.77.

Read our full, actionable report on Thermo Fisher here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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