Revvity Q4 CY2024 Highlights

Revenue: $729.4 million, in line with analyst estimates ($727.5 million), representing a 4.8% YoY increase.

Adjusted EPS: $1.42, beating analyst consensus ($1.38) by 3.1%.

Adjusted EBITDA: $228.8 million, missing analyst estimates ($242.7 million) by 5.7%, resulting in a 31.4% margin.

Guidance for FY2025:

* Revenue: $2.83 billion midpoint, missing analyst estimates by 1.3%, implying 2.5% growth.
* Adjusted EPS: $4.95 midpoint, missing analyst estimates by 1%.

Key Financial Metrics:

* Operating Margin: 16.3%, up from 11.1% in Q4 CY2023.
* Free Cash Flow Margin: 20.7%, down from 24.8% in Q4 CY2023.
* Organic Revenue: 6% YoY growth.
* Market Capitalization: $15.44 billion.

Commentary:

"We finished last year on a strong note, positioning us well as we head into 2025," said Prahlad Singh, President and CEO of Revvity.

Business Overview:

Revvity (NYSE:RVTY) provides advanced diagnostic tools, scientific instruments, and services for the pharmaceutical and biotechnology industries.

Industry Analysis:

* Research Tools & Consumables subsector enables scientific discoveries in academia, biotechnology, and pharmaceuticals.
* Key challenges include high R&D investment, pricing pressures, and fluctuations in research funding.
* Tailwinds include growing demand for emerging field tools and AI-driven solutions.

Sales Growth:

* Revenue growth has been inconsistent, with sales largely stable over the past five years.
* Recent revenue declined by 8.8% annually over the past two years.
* Analysts project 3.6% revenue growth over the next 12 months.

Adjusted Operating Margin:

* Revvity has historically maintained high profitability, with an average adjusted operating margin of 32.3% over the past five years.
* Margin has decreased by 10.3 percentage points on a two-year basis.
* Q4 CY2024 adjusted operating margin was 31.4%, up 3.8 percentage points YoY.

Earnings Per Share:

* EPS grew at a modest 3.6% CAGR over the past five years.
* EPS was $1.42 in Q4 CY2024, beating estimates by 3.1%.
* Wall Street estimates full-year EPS of $4.90 for FY2025, representing a 1.9% growth.

Key Takeaways:

* Revvity exceeded organic revenue expectations but missed guidance slightly.
* The company faces challenges in maintaining profitability and sales growth.
* Investors should carefully consider valuation and business qualities before making investment decisions.