On Monday, Stifel maintained its Hold rating on Revvity Inc (NYSE:RVTY) stock with a steady price target of $110.00 following the company's second quarter financial results for the year 2024.
Revvity's organic revenues saw a slight decline of 1% to $692 million, surpassing the anticipated 2% decrease projected by Wall Street and aligning with Stifel's forecast. This performance was within the company's own expected low single-digit decline.
The company faced a 1% foreign exchange headwind, which was expected, and no year-over-year impact from Covid on revenues was reported. Revvity's adjusted operating margins showed a marginal contraction of about 10 basis points, landing at 28.7%.
This result exceeded both the Street's expectation of 27.5% and Stifel's projection of 27.4%, leading to an adjusted earnings per share (EPS) of $1.22. This figure not only topped the company's guidance but also outdid the Street's estimate of $1.12 and Stifel's estimate of $1.11.
Revvity's diagnostics segment and margin performance were highlights, although these positives were somewhat counterbalanced by weaker results in the Life Sciences division. In response to the earnings beat, the company has raised the midpoint of its full-year earnings guidance by 10 cents. Additionally, the forecast for organic growth has been refined, remaining within the previously provided range.
The stock had already seen upward movement last week in tandem with its peers. Following the release of the second quarter results, Stifel anticipates that Revvity's shares might experience limited movement, possibly seeing a slight increase due to the improved earnings guidance. Market reactions may further hinge on the company's commentary regarding future growth and underlying assumptions.
In other recent news, Revvity Inc has reported its second quarter 2024 revenue of $692 million, slightly surpassing expectations, and an adjusted earnings per share (EPS) of $1.22, exceeding the consensus forecast.
The company has updated its full-year 2024 guidance, projecting revenues to be between $2.77 billion and $2.79 billion. This performance was credited to stronger-than-expected growth in the diagnostics sector, particularly in the ImmunoDx sector, despite a slight decline in the Life Sciences division.
Evercore ISI has maintained its positive outlook on Revvity with an Outperform rating and a steady price target of $126.00. Citi, TD Cowen, and Baird have also maintained positive ratings on Revvity, with Citi setting a price target of $135.00, TD Cowen increasing its price target to $130.00, and Baird adjusting its price target to $127.00.
These are among the recent developments for Revvity Inc.
InvestingPro Insights
Revvity Inc's (NYSE:RVTY) recent financial results have been a mixed bag, with a slight decline in organic revenues but a stronger-than-expected adjusted operating margin. To further understand the company's financial health and potential, let's delve into some key metrics and insights from InvestingPro. The company's Market Cap stands at a robust $14.21B, indicating a sizeable presence in the market. Despite a high P/E Ratio of 95.77, the adjusted P/E Ratio for the last twelve months as of Q1 2024 is more moderate at 39.35, suggesting that investors may be expecting earnings growth. Moreover, the Gross Profit Margin for the same period is healthy at 55.5%, reflecting the company's ability to maintain profitability.
From the perspective of InvestingPro Tips, two insights stand out. Firstly, Revvity's management has been aggressively buying back shares, which often signals confidence in the company's future prospects and can be positive for stock value. Secondly, the company has maintained dividend payments for 54 consecutive years, showcasing a commitment to returning value to shareholders. These factors, combined with the expectation that net income is expected to grow this year, could make RVTY an attractive option for investors seeking stable companies with growth potential.
For investors interested in a deeper analysis, InvestingPro offers additional tips on Revvity Inc, which can be accessed at https://www.investing.com/pro/RVTY. To enhance your investing strategy, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Currently, there are 11 more InvestingPro Tips available that could provide further insights into Revvity's performance and outlook.
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