Revvity Earnings: Rough Period of Volume Weakness Lingers and Recovery Likely Pushed Out to Mid-2024

Our $162 fair value estimate remains intact for narrow-moat Revvity, even as soft demand weighed on its third-quarter results and near-term outlook. Management again lowered full-year 2023 revenue and adjusted EPS forecasts on softer spending by biopharmaceutical clients that will likely persist through the first half of 2024. The moderate updates we made to our full-year 2023 revenue growth assumptions, in line with updated guidance and reflecting recent headwinds, were roughly offset by cash flows generated since our last valuation update, though, resulting in our unchanged valuation. With shares down over 15% on these weak results and guidance, we continue to highlight Revvity as significantly undervalued and continue to view the firm's long-term outlook as strong, despite its weak near-term prospects.