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REVVITY, INC. (RVTY)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered $729M revenue (+5% reported; +6% organic) and adjusted EPS of $1.42, with adjusted operating margin of 30.3% .
  • Results were above company expectations: organic growth exceeded the high end, and adjusted EPS was ~$0.04 above guidance midpoint and ~$0.02 above the high end, despite ~$0.03 FX headwinds to EPS; GAAP operating income rose to $119M (16.3% margin) .
  • FY2025 guidance initiated: revenue $2.80–$2.85B, adjusted EPS $4.90–$5.00; management expects 3–5% organic growth, ~20–40 bps operating margin expansion (to ~28.5–28.7%), and ~1.5% FX revenue headwind .
  • Capital deployment remains a catalyst: Q4 buybacks of $185M (FY 2024 $370M), ~$800M remaining under the $1B authorization; net debt/adj. EBITDA ~2.3x .
  • Narrative for 2025: demand stabilization with improving reagents and diagnostics; instrumentation recovery still cautious (especially China stimulus timing), underpinning conservative, balanced guidance .

What Went Well and What Went Wrong

What Went Well

  • Strong Q4 growth and profitability: +6% organic growth and 30.3% adjusted operating margin; CEO: “We finished last year on a strong note positioning us well as we head into 2025” .
  • Diagnostics and software outperformed: Immunodiagnostics grew mid-single digits in Q3, with low double-digit newborn screening growth globally; Signals software showed >30% SaaS ARR growth with 106% net retention in 2024 .
  • Robust cash generation and capital returns: Q4 free cash flow was $151M (FY 2024 conversion ~96%), and share repurchases were stepped up aggressively in Q4 ($185M) .

What Went Wrong

  • Instrumentation remained soft, especially in China: customers paused purchases pending stimulus; Life Sciences instruments down high single digits in Q4 and guided to continue challenging near term .
  • FX headwinds intensified in Q4: ~1% revenue headwind, nearly ~200 bps worse than expected, and ~$0.03 EPS headwind .
  • Life Sciences lagged on the year: FY Life Sciences revenue declined low single digits organically; Applied Genomics was down low double digits for FY (though improved in Q3/Q4) .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue (GAAP, $USD Millions)$691.7 $684.0 $729.4
Adjusted Revenue ($USD Millions)$691.9 $684.3 $729.6
GAAP EPS ($USD)$0.45 $0.77 $0.78
Adjusted EPS from Continuing Ops ($USD)$1.22 $1.28 $1.42
Operating Margin % (GAAP)12.4% 14.3% 16.3%
Adjusted Operating Margin %28.7% 28.3% 30.3%
SegmentQ2 2024Q3 2024Q4 2024
Life Sciences Revenue ($USD Millions)$314 $301 $336
Diagnostics Revenue ($USD Millions)$378 $383 $393
Life Sciences Adjusted Op Income ($USD Millions)$112 $103 $131
Diagnostics Adjusted Op Income ($USD Millions)$98 $101 $98
Life Sciences Adjusted OP Margin %35.8% 34.2% 38.9%
Diagnostics Adjusted OP Margin %25.9% 26.5% 25.0%
KPIQ2 2024Q3 2024Q4 2024
Organic Revenue Growth %-1% 2% 6%
Free Cash Flow ($USD Millions)$160 $135 $151
Share Repurchases ($USD Millions)$20 $154 $185
Adjusted Tax Rate %21.1% 15.3% 15.7%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPSFY 2024$4.70–$4.80 (raised on 7/29/24) $4.83–$4.87 (raised on 11/4/24) Raised
RevenueFY 2024$2.77–$2.79B (7/29/24) $2.75–$2.77B (11/4/24) Lowered (FX)
RevenueFY 2025N/A$2.80–$2.85B Initiated
Adjusted EPSFY 2025N/A$4.90–$5.00 Initiated
Organic GrowthFY 2025N/A3%–5% Initiated
Adjusted Operating Margin %FY 2025N/A~28.5%–28.7% (20–40 bps expansion) Initiated
FX Headwind to RevenueFY 2025N/A~1.5% full-year; ~2% in Q1 Initiated
Net Interest & Other ExpenseFY 2025N/A~$70M Initiated
Adjusted Tax RateFY 2025N/A~20% Initiated
Avg Diluted SharesFY 2025N/A~120M Initiated
Free Cash FlowFY 2025N/A~$500M (excl. ~$50M AES proceeds) Initiated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Pharma/biotech demand normalizationContinued headcount reductions; cautious outlook; raised EPS guidance despite market uncertainty Stabilization; worst likely behind; path to normalization continues Stable demand; reagents improving; instruments lag; assume current environment persists Improving
China stimulus impact on instrumentsInstrument orders delayed; down >30% in LS/applied genomics; expecting stimulus impact largely next year Customers waiting on stimulus; majority impact seen in 2025 Continued delays; modest orders; prudence embedded in guidance Lingering headwind
Signals software trajectoryHigh-teens organic growth; strong retention; pipeline/renewal timing Mid-single-digit decline on timing; full-year low double-digit growth Low double-digit FY growth expected; adoption of new offerings (Phenologic AI; Signals Clinical/Synergy) Consistently strong
Immunodiagnostics & reproductive healthImmunodiagnostics high single digits; newborn ex-China strong Immunodiagnostics mid-single digits; newborn low double-digit globally, Year-of-Dragon benefit Immunodiagnostics high single digits in 2025; reproductive health low single digits Strong/stable
AI/technology initiativesAI used for collections and R&D (AlphaFold; GLP‑1 receptor) Launched Phenologic AI; Revvity transcribed AI; BARDA contract Ongoing adoption of Phenologic.AI; Signals momentum Expanding
Capital deploymentPlan to step up buybacks; deleveraging $154M repurchases; new $1B authorization; paid down ~$700M notes $185M repurchases; ~$800M remaining authorization Aggressive
Tax/regulatory—Lowered FY2024 adjusted tax rate to ~19% Global tax reform pushes 2025 adjusted tax rate to ~20% Slight headwind 2025

Management Commentary

  • CEO: “We finished last year on a strong note positioning us well as we head into 2025” and “I am confident that the full potential of Revvity will be even more externally apparent… following the significant transformation our business has undergone” .
  • CFO: “Our fourth quarter results came in solidly above our expectations and guidance… adjusted EPS… was $0.04 above the midpoint… and $0.02 above the high end despite approximately $0.03 of pressure from… FX headwinds” .
  • Strategy shift: Re-segmentation moves most Applied Genomics into Life Sciences in 2025; new Life Science Solutions will be ~85% of Life Sciences segment .
  • Innovation pipeline: Phenologic AI launched; Signals Clinical/Synergy gaining traction; partnerships with Genomics England and Element Biosciences to advance newborn sequencing workflows .

Q&A Highlights

  • Demand normalization vs. prudence: Management assumes current environment persists through 2025 despite signs of recovery; guidance balanced given geopolitical/regulatory uncertainty .
  • China outlook: Company expects China to grow mid-single digits in Q4 via Diagnostics; stimulus impact largely 2025; LS instruments pressured near term .
  • Reagents momentum: Share gains and mid-single-digit growth expected; reagents should outpace platforms within Life Sciences Solutions in 2025 .
  • Immunodiagnostics: 2025 growth guided high single digits; China mid-single-digit with pricing headwinds embedded .
  • Q1 cadence: Heavier tax rate in Q1; operating margins seasonally lower in Q1; EPS distribution ~19% of FY in Q1 .

Estimates Context

  • Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of this analysis due to data request limits. Comparisons vs. Wall Street estimates are therefore not included. Values retrieved from S&P Global were unavailable.*

Key Takeaways for Investors

  • Margin durability and cash generation provide downside protection; Q4 adjusted margins at 30.3% and FCF $151M support continued capital returns even with moderate top-line growth .
  • Guidance is conservative and likely beatable if instrumentation recovery accelerates or China stimulus flows earlier than expected; upside scenario could lift organic growth above 5% .
  • Diagnostics and software are core growth drivers into 2025; immunodiagnostics high-single-digit growth and Signals low-double-digit growth underpin mix benefits .
  • Watch China stimulus timing and FX: instrumentation remains the swing factor; FX modeled as ~1.5% revenue headwind and ~$0.10 EPS impact in 2025 .
  • Reagents show sustained improvement and potential share gains; early-cycle consumables recovery is a positive leading indicator for pharma/biotech normalization .
  • Aggressive buybacks continue; ~$800M remaining authorization provides EPS support and signaling while net leverage remains manageable (~2.3x) .
  • Operating model transformation and re-segmentation should enhance focus and disclosure; expect clearer reporting and leverage to growth in Life Science Solutions from Q1 2025 .