Revvity raises 2024 profit forecast on medical equipment demand; shares rise

Revvity

29/07/2024 13:09

July 29 (Reuters) - Medical equipment maker Revvity
 RVTY.N  raised its annual profit forecast on Monday, after
beating second-quarter results estimates on better-than-expected
demand for its diagnostic products.
    The Massachusetts-based company's shares were up 6.7% before
the bell.
    Biotech clients of contract drug manufacturers and
diagnostic equipment makers cut back on spending in 2023 amid
rising interest rates.
    However, some analysts have said funding could stabilize
this year after regulatory approvals for related companies in
the United States were strong in 2023.
    Revvity forecast annual adjusted profit between $4.70 and
$4.80 per share, up from its prior view of $4.55 to $4.75.
    Analysts were expecting a profit of $4.63 per share in 2024,
according to LSEG data.
    The company, which generates more than half of its sales
outside the United States, tightened its full-year revenue
forecast to between $2.77 billion and $2.79 billion due to a
strong dollar from its prior view of $2.76 billion to $2.82
billion.
    The latest forecast also assumes a 2% organic revenue
growth.
    Revvity reported total sales of $691.7 million in the second
quarter, compared with analysts' estimates of $690.4 million.
    Revenue from its diagnostics segment, which provides testing
tools for processes such as genetic screening, rose 1.4% to
$378.1 million.
    Revvity's quarterly adjusted profit was $1.22 per share,
beating estimates of $1.12.
    Formerly known as PerkinElmer, the company in 2022 divested
three of its businesses to focus on life sciences and
diagnostics units.

 (Reporting by Puyaan Singh; Editing by Shreya Biswas)
 ((Puyaan.Singh@thomsonreuters.com))