Shares of health sciences company Revvity (RVTY) plunged after it reported disappointing results for the third quarter of 2023 and updated its guidance. Management said the shortfall was due to an “increasingly challenging end market environment.”
Revvity reported third quarter adjusted EPS of $1.18 on revenue of $671 million. Consensus was expecting EPS of $1.19 and revenue of $695 million. The company said it expects EPS of $4.53-$4.57 for 2023, lower than the consensus of $4.79, and revenue of $2.72-$2.74 billion, compared to the average estimate of $2.83 billion.
“We executed well during the third quarter in an increasingly challenging end market environment,” said Prahlad Singh, president and CEO of Revvity. “During this period of increased market uncertainty, we will focus our efforts on those factors we can control to ensure the Company emerges from this period in an even stronger and more agile position.”
“Similar to peers, the incremental pressure came from a change in Pharma Biotech spending, with perhaps the one difference being most of this change happening late in the [quarter], in September," said analysts at Evercore ISI.
Evercore ISI said it now sees flattish EPS for 2024.
“Turning to FY24, while mgmt. did not give Guidance, they did note that if FY24 organic were similar to FY23 in the [low-single-digit] range, RVTY expects to show modest [operating margin] expansion …With peers assuming 1H24 to be similar to 2H23, it makes sense to assume a [low-single-digit] outlook for RVTY similar to peers. These assumptions lead us to flattish EPS est for FY24,” wrote the analysts.
Revvity declined by 18% shortly after results were published, making it the second worst performing stock in the S&P 500 today.