Revvity Gears Up for Q4 Earnings: What's in the Offing?

Revvity, Inc. RVTY is slated to report fourth-quarter 2024 results on Jan. 31, before market open.In the last reported quarter, the company delivered an earnings surprise of 13.27%. RVTY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.55%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q4 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $730.1 million, up 4.9% from the prior-year quarter’s level. The consensus mark for earnings is pinned at $1.36 per share, indicating a deterioration of 8.8% year over year.RVTY expects organic top-line growth to be 3-5% in the fourth quarter. Adjusted EPS is likely to be in the range $4.83-$4.87. Life Sciences instruments sales are expected to decline mid-single digits, while Diagnostics should remain strong. Moreover, sales in China are likely to grow mid-single digits, largely driven by Diagnostics.Diagnostics SegmentRevvity’s Diagnostics segment sales improved 5% organically in the third quarter. The segment’s performance is expected to remain strong in the fourth quarter as well, driven by growth in Immunodiagnostics, Reproductive Health and newborn screening. Immunodiagnostics is projected to maintain mid-single-digit growth, supported by strong commercial execution. Reproductive Health, particularly newborn screening, is likely to have benefited from the "Year of the Dragon" effect in China, which led to higher birth rates. Additionally, new product launches, such as the Revvity’s transcribed AI service and EUROIMMUN’s APOE gene assay for Alzheimer’s risk, are expected to contribute positively. Revvity Inc. Price and EPS Surprise Revvity Inc. price-eps-surprise | Revvity Inc. QuoteHowever, challenges include continued global birth rate declines, which might have limited upside growth in reproductive health. Additionally, China’s government stimulus has yet to significantly impact purchasing behavior, with most benefits expected in 2025. Despite these headwinds, China’s Diagnostics business is expected to have seen mid-single-digit growth, helping sustain overall segment momentum.Our estimate for the Diagnostic segment’s revenues is pegged at $400.4 million, up 6.4% year over year.Life Sciences SegmentRevvity’s Life Sciences business declined 3% organically in the last reported quarter as weaker pharma/biotech demand and China headwinds, such as customers’ delayed purchases and pending government stimulus, led to lower instruments sales. The trend is likely to have continued in the fourth quarter as well. However, improving demand for reagents and an anticipated very strong performance for the Signals software business are likely to offset the decline in instruments revenues.Per management, Diagnostics segment is expected to have delivered a robust performance in the fourth quarter, driven by Immunodiagnostics growth, stable demand in Reproductive Health, and strength in newborn screening, particularly in China due to the "Year of the Dragon." New product launches, including AI-driven workflow automation and an Alzheimer’s risk assay, must have further supported growth.Our estimate for the Life Sciences segment’s revenues is pegged at $333.4 million, up 4.3% year over year.Other Factors to ConsiderIn 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 fourth quarter.What the Zacks Model UnveilsPer our proven model, 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. This is not the case here, as you will see below.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.55%. 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 #4 (Sell).Stocks Worth a LookHere are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.Masimo MASI has an Earnings ESP of +4.05% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to release fourth-quarter 2024 results on Feb. 25. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.10%. The Zacks Consensus Estimate for EPS implies an improvement of 14.4% from the year-ago reported figure.Cencora COR has an Earnings ESP of +0.71% and a Zacks Rank #2 at present. The company is scheduled to release first-quarter fiscal 2025 results on Feb. 5.COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.97%. The Zacks Consensus Estimate for EPS implies a surge of 7% from the year-ago reported figure.Maravai LifeSciences MRVI has an Earnings ESP of +10.00% and a Zacks Rank #2 at present. The company is expected to release fourth-quarter 2024 results in February.MRVI delivered a trailing four-quarter average earnings surprise of 116.67%. The Zacks Consensus Estimate for fourth-quarter EPS implies a decline of 400% from the year-ago reported figure.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Masimo Corporation (MASI): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Maravai LifeSciences Holdings, Inc. (MRVI): Free Stock Analysis Report Revvity Inc. (RVTY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks