Segmental Performance to Drive RVTY's Q1 Earnings: Is a Beat Likely?

Revvity, Inc. RVTY is slated to report first-quarter 2025 results on April 28, before market open.

In the last reported quarter, the company delivered an earnings surprise of 4.41%. RVTY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.48%. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Q1 Estimates

The Zacks Consensus Estimate for revenues is pegged at $662.2 million, up 1.9% from the prior-year quarter’s level. The consensus mark for earnings is pinned at 96 cents per share, indicating a deterioration of 2% year over year.

RVTY expects organic top-line growth to be 3-5% in the first quarter. The company expects 19% of full-year adjusted EPS guidance of $4.90-$5.00 to be recorded in the first quarter, implying an EPS of 93-95 cents. The currency movement is expected to have an unfavorable impact of approximately 2% on the top line. Life Sciences instruments sales are expected to grow in low-single digits, while Diagnostics should remain steady. Moreover, sales in China are likely to increase in mid-single digits, largely driven by Life Sciences.

Diagnostics Segment

Revvity’s Diagnostics segment sales improved 6% organically in the fourth quarter. The segment’s performance is expected to have remained strong in the first quarter as well, driven by growth in Immunodiagnostics and Reproductive Health. Immunodiagnostics is projected to have grown in high-single-digit, supported by strong commercial execution.

However, the performance is likely to have been partially offset by mid-single-digit pricing headwind in China due to volume-based procurement. Additionally, new product launches, such as Revvity’s transcribed AI service and EUROIMMUN’s APOE gene assay for Alzheimer’s risk, are expected to have contributed positively. 

Meanwhile, sales at Reproductive Health are likely to have experienced weak sequential growth. The challenges include continued global birth rate declines, which might have limited upside growth in reproductive health. Additionally, China’s government stimulus is yet to significantly impact purchasing behavior, with most benefits expected in the rest of 2025. RVTY’s partnership with Element Biosciences to jointly commercialize an IVD workflow for neonatal sequencing earlier this year should have boosted adoption, thereby driving sales.

Our estimate for the Diagnostic segment’s revenues is pegged at $324.8 million, down 6.4% year over year.

Revvity Inc. Price and EPS Surprise

Revvity Inc. price-eps-surprise | Revvity Inc. Quote

Life Sciences Segment

Revvity’s Life Sciences business improved 5% organically in the last reported quarter, primarily driven by recovery in pharma/biotech customer activity. The trend is likely to have continued in the soon-to-be-reported quarter. The quarterly results are likely to reflect a slower growth rate compared to the fourth quarter. The segment sales are likely to have been driven by the strong performance of Reagents and Signals software, partially offset by weak instruments sales. RVTY’s new offerings, Signals Clinical and Signals Synergy, are likely to have been the key drivers for adoption of Signals software during the first quarter.

Our estimate for the Life Sciences segment’s revenues is pegged at $338 million, up 11.6% year over year.

Other Factors to Consider

In November, Revvity announced an expansion of its work with Genomics England that leverages both organizations' expertise and resources to advance critical genomic initiatives across the United Kingdom. The collaboration might have boosted newborn screening as part of a world-leading study led by Genomics England for 200 rare genetic conditions.

RVTY launched the TotalSeq Phenocyte single-cell protein profiling solution in the same month in collaboration with Scale Biosciences to easily identify and characterize rare cell subtypes, which ultimately power immunology and oncology research. This launch might have brought additional revenues for the Life Sciences segment during the first quarter.

Revvity generates a certain portion of its sales from China. The region also represents a crucial growth factor for its business in Asia. On its first-quarter earnings call, the company may provide an update on the impact of tariff imposition by the United States as well as China.

Earnings Beat Likely

Our proven model predicts an earnings beat for Revvity this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.52%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Revvity currently has a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.

Cardinal Health CAH has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.37%. The Zacks Consensus Estimate for third-quarter fiscal 2025 EPS implies a rise of 34.4% from the year-ago reported figure.

Cencora COR has an Earnings ESP of +0.91% and a Zacks Rank #2 at present. 

The company is scheduled to release second-quarter fiscal 2025 results on May 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.94%. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS implies a 7.1% improvement from the year-ago reported figure.

Globus Medical GMED has an Earnings ESP of +2.40% and a Zacks Rank #3 at present. The company is expected to release first-quarter 2025 results in May.

GMED delivered a trailing four-quarter average earnings surprise of 19.86%. The Zacks Consensus Estimate for first-quarter EPS implies an improvement of 2.8% from the year-ago reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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