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Revvity Q4 Non-COVID Revenues Decline 3 Percent

NEW YORK – Revvity on Thursday reported a 6 percent year-over-year decline in its fourth quarter revenues.

Non-COVID-related revenues declined 3 percent year over year organically.

For the three months ended Dec. 31, 2023, the Waltham, Massachusetts-based diagnostics and life science tools firm posted $695.9 million in total revenues compared to $741.2 million a year ago. It beat the consensus Wall Street revenue estimate of $677.9 million.

By segment, Diagnostics revenues slipped more than 4 percent to $376.4 million from $394.0 million in Q4 2022. Non-COVID-related Diagnostics revenues were up 3 percent year over year, Revvity said. Meanwhile, its Life Sciences revenues contracted 8 percent to $319.7 million from $347.4 million.

"We persevered through continued industry headwinds and performed better than anticipated during the final months of 2023," Revvity President and CEO Prahlad Singh said in a statement.

On a conference call, he added that the Q4 results fell short of Revvity's hopes at the start of the year, but he expects the company will compare favorably with peers and will continue to deliver revenue growth at the high end of its industry.

Revvity CFO Max Krakowiak said during the call that Revvity expects it will continue facing headwinds for the next few quarters and return to revenue growth in Q3 2024.

Revvity had a profit of $78.6 million, or $.64 per share, in Q4 2023 compared to a profit of $127.7 million, or $1.01 per share, in Q4 2022. Adjusted EPS was $1.25, beating the consensus Wall Street estimate of $1.16.

The company trimmed its R&D spending 9 percent to $49.6 million in the recently completed quarter from $54.5 million a year ago. Its SG&A costs grew 5 percent to $256.7 million from $244.3 million.

For full-year 2023, Revvity's revenues were down 17 percent to $2.75 billion from $3.31 billion, but beat the analysts' average estimate of $2.73 billion. Non-COVID-related revenues rose 2 percent organically, it said.

Diagnostics revenues fell 27 percent in 2023 to $1.46 billion from $2.02 billion. Non-COVID-related revenues in the segment grew 5 percent year over year organically.

"Revvity is extremely well-positioned to capitalize on some of the most exciting areas of pharmaceutical research and development such as cell and gene therapies, multi-omics, and precision medicine," Singh said. "We are also involved in some of the most durable, higher-growth areas within clinical diagnostics such as autoimmunity, tuberculosis, and other emerging infectious diseases."

Krakowiak said the firm recorded strong global growth in its immunodiagnostics revenues, with high-teens gains in the quarter and full year outside China. Reproductive health diagnostics revenues declined in the low single digits for the quarter and full year, although that trend was offset by growth in the company's newborn screening franchise.

The firm's applied genomics business saw continued pressure from a slowdown in spending among pharma and biotech customers and a "hangover" effect from elevated spending by clinical laboratories in the early days after COVID-19's emergence. Organic revenues for the applied genomics business, excluding COVID-19 testing, declined in the mid-teens during the quarter and high-single digits for the full year, Krakowiak said.

Life Sciences revenues were flat year over year in 2023 at $1.29 billion.

Revvity's profit for 2023 was $693.1 million, or $5.55 per share, compared to a profit of $569.2 million, or $4.50 per share, in 2022. Adjusted EPS of $4.65 beat the consensus Wall Street estimate of $4.56.

The company lowered its R&D spending 2 percent to $216.6 million in 2023 from $221.6 million a year ago. Its SG&A costs were trimmed by about 1 percent to $1.02 billion from $1.03 billion.

Revvity finished 2023 with $913.2 million in cash and cash equivalents and $689.9 million in marketable securities.

It initiated full-year 2024 guidance and said it expects total revenues of between $2.79 billion and $2.85 billion. Adjusted EPS is anticipated to be between $4.55 and $4.75.

In afternoon trading on Thursday, Revvity's shares on the Nasdaq were up about 2 percent at $108.82.