Revvity (RVTY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $684M, up 2% year-over-year, with Diagnostics up 6% and Life Sciences down 2%; organic growth was 2%.

• Adjusted EPS was $1.28, exceeding expectations and up from $1.18; GAAP EPS was $0.77, up from $0.08.

• Adjusted operating margin rose to 28.3%, up 80 bps year-over-year, reflecting productivity initiatives.

• Free cash flow was $135M in Q3, $427M year-to-date, with 100% conversion to adjusted net income.

• Board authorized a new $1B share repurchase program, replacing the prior program; over 100% of Q3 cash flow returned to shareholders.

Financial highlights

• Q3 adjusted revenue: $684M (+2% organic); adjusted operating margin: 28.3% (up 80 bps YoY); adjusted EPS: $1.28.

• Free cash flow: $135M in Q3, $427M YTD; cash and cash equivalents at quarter-end: $1.23B.

• Net income for Q3: $94.4M, up from $9.5M in Q3 2023.

• Adjusted gross margin: 61.7%, up 60bps year-over-year.

• Net debt-to-adjusted EBITDA leverage: 2.1x after retiring $700M debt.

Outlook and guidance

• Full-year 2024 revenue guidance: $2.75–$2.77B, with 0–1% organic growth.

• Adjusted EPS guidance raised to $4.83–$4.87.

• Adjusted operating margin outlook: 28–28.5% for 2024; adjusted tax rate projected at ~19%.

• Continued active share repurchases planned; $1B new authorization over two years.

• Management expects sufficient cash for operations, capex, acquisitions, debt service, and dividends for at least 12 months.