Shares of Revvity (RVTY -0.57%) -- formerly known as PerkinElmer -- fell 16.1% on Monday after the health science solutions and services company announced weaker-than-expected third-quarter 2023 results and reduced its full-year outlook.
Revvity is battling a tough market environment
Revvity's quarterly revenue declined 5.8% year over year, to $670.7 million, translating to generally accepted accounting principles (GAAP) net income of $9.5 million, or $0.08 per share. On an adjusted (non-GAAP) basis -- which adjusts for one-time items like restructuring and divestiture costs -- earnings from continuing operations were $1.18 per share, down from $1.21 per share in the same year-ago period. Analysts, on average, were looking for adjusted earnings of $1.19 per share on revenue closer to $695 million.
Still, Revvity CEO Prahlad Singh insisted the company "executed well ... in an increasingly challenging end market environment," adding that Revvity is focusing "on those factors we can control to ensure the company emerges from this period in an even stronger and more agile position."
Is Revvity a buy now?
Looking ahead to the rest of the year, Revvity reduced its outlook to call for full-year 2023 revenue of $2.72 billion to $2.74 billion (down from $2.8 billion to $2.85 billion previously), with adjusted earnings per share of $4.53 to $4.57 (down from $4.70 to $4.90 before).
In the end, it's hard to blame Revvity for focusing on the positive, and the company might well emerge better positioned to resume growing when current difficult market conditions abate. But given its weak quarter and lowered outlook, Revvity stock is understandably plunging in response today. Until we see more tangible signs of a return to sustained, profitable growth, I'm personally content watching this story play out from the sidelines.