Revvity (RVTY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $692 million, down 2% year-over-year, with Life Sciences declining 7% and Diagnostics up 1%; strong diagnostics and software performance offset pharma/biotech headwinds.

• Adjusted organic revenue declined 1% year-over-year, at the upper end of guidance, with robust performance in Signal software and diagnostics.

• Adjusted EPS from continuing operations was $1.22, surpassing expectations and up slightly from $1.21 year-over-year; GAAP EPS rose to $0.45.

• Free cash flow conversion exceeded 100% of adjusted net income for the third consecutive quarter, totaling $293 million year-to-date.

• Company celebrated its first anniversary as Revvity, highlighting innovation, operational transformation, and the launch of the AP2400 workflow for T-SPOT.TB testing.

Financial highlights

• Q2 2024 adjusted revenue was $692 million, a 1% organic decline year-over-year; adjusted operating margin was 28.7%, nearly unchanged from prior year.

• Adjusted EPS was $1.22, $0.10 above guidance; GAAP EPS was $0.45.

• Free cash flow for the quarter was $160 million, with year-to-date free cash flow at $293 million, 108% of adjusted net income.

• Cash and cash equivalents at quarter-end were $1.25 billion, up from $913 million at year-end 2023.

• Adjusted gross margin was 61.4%, down 100 basis points year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance is $2.77–$2.79 billion, with 2% organic growth and a -1% FX headwind.

• Adjusted EPS guidance raised to $4.70–$4.80 for full-year 2024.

• Adjusted operating margin guidance increased to 28%–28.5% for the year.

• Net interest and other expense for the year now expected at $50 million, down from $60 million.

• Effective tax rate on continuing operations expected to be approximately 20% for fiscal 2024.