Nucor earnings beat by $0.08, revenue fell short of estimates
Introduction & Market Context
Revvity Inc (NYSE:RVTY) presented its first quarter 2025 financial results on April 28, 2025, reporting solid organic growth despite a challenging macroeconomic environment. The scientific solutions company saw its shares rise 3.4% to $97.50 in pre-market trading following the announcement, suggesting positive investor reception to the results.
The company, which focuses on diagnostics, life sciences, and software solutions, reported performance that aligns with its strategic focus on innovation and transformation. This quarter’s results come after Revvity’s Q4 2024 performance, which saw a slight revenue miss but an earnings beat.
Quarterly Performance Highlights
Revvity reported Q1 2025 revenue of $665 million, representing a 2% year-over-year increase on a reported basis and 4% organic growth. Foreign exchange had a negative 1% impact, while M&A contribution was neutral.
As shown in the following financial results summary:
The company achieved an adjusted operating margin of 25.6%, up 5 basis points year-over-year, while adjusted gross margin expanded to 61.7%, an 80 basis point improvement. Adjusted earnings per share reached $1.01, up 4% compared to the same period last year, with an adjusted tax rate of 19.5%.
Free cash flow generation remained strong at $118 million, representing 97% of adjusted net income year-to-date, demonstrating the company’s ability to convert earnings into cash.
The revenue breakdown by segments, geographic regions, and product mix provides additional insight into Revvity’s diversified business model:
Segment Analysis
Revvity’s business is divided into two main segments: Life Sciences and Diagnostics, each contributing approximately half of the company’s revenue.
The Life Sciences segment generated $340 million in revenue with 2% organic growth and impressive margin expansion:
The segment saw low single-digit growth from pharmaceutical and biotech customers, offset by a low single-digit decline from academic and government sectors. While Life Science Solutions experienced a low single-digit decline as instrument sales decreased, this was partially offset by solid reagent growth. The software business was a standout performer with double-digit growth driven by new orders, strong renewals, and SaaS performance.
The Diagnostics segment outperformed with 5% organic growth, generating $324 million in revenue:
Immunodiagnostics showed high single-digit growth globally, including low single-digit growth in China. Reproductive Health achieved low single-digit growth globally, primarily driven by strength in newborn screening. However, operating margins in this segment declined by 150 basis points year-over-year to 22.8%, which the company attributed to strategic investments to drive future growth.
Key Strategic Initiatives
Revvity highlighted several key initiatives that supported its quarterly performance and position the company for future growth:
On the innovation front, Revvity expanded its next-generation sequencing (NGS) partnership with Genomics England and received FDA approval for a more automated latent tuberculosis workflow. The company emphasized its balanced portfolio approach to navigate the dynamic macroeconomic environment, leveraging strong execution across business segments.
2025 Outlook & Guidance
Revvity maintained a positive outlook for the full year 2025, providing the following guidance:
The company expects 2025 revenue between $2.83 billion and $2.87 billion, representing 3-4% reported growth and 3-5% organic growth. This guidance is slightly higher than the $2.8-$2.85 billion range mentioned in the Q4 2024 earnings call, suggesting increased confidence in the company’s growth trajectory.
Adjusted operating margin is projected to be between 27.9% and 28.1%, while adjusted EPS is expected to range from $4.90 to $5.00. The company anticipates an adjusted tax rate of approximately 19% and average diluted share count of 119 million.
Market Reaction & Conclusion
Revvity’s shares responded positively to the Q1 2025 results, with pre-market trading showing a 3.4% increase to $97.50. This represents a recovery from the company’s recent trading range but remains below its 52-week high of $129.50.
The company’s performance this quarter demonstrates its ability to generate growth despite mixed market conditions, with particular strength in the Diagnostics segment and software business. Strategic investments in the Diagnostics segment, while temporarily pressuring margins, position the company for future growth opportunities.
Revvity’s balanced approach to portfolio management, focus on innovation, and strong cash flow generation provide a solid foundation as it works toward its full-year objectives. The slight upward adjustment to revenue guidance suggests management’s growing confidence in the company’s trajectory for the remainder of 2025.
Full presentation:
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