Revvity raises annual profit, revenue forecasts on strong diagnostics demand

Aug. 4 (Reuters) - Medical equipment maker Revvity raised its annual profit and revenue forecasts on Tuesday, after topping Wall Street estimates for the second quarter helped by improving demand for its drug-development tools and diagnostic testing products.

"It appears that our pharma and biotech customers are beginning to return to more normalized patterns, while increasing AI-related work is creating incremental demand which did not exist in the past," said Chief Financial Officer Max Krakowiak in a call with analysts.

• Shares of the company, however, were down nearly 5% in morning trade.
• Quarterly revenue in Revvity's life sciences unit fell 3% from a year earlier to $359 million, primarily due to an expected roughly 20% decline in its Signals software business linked to factors including contract timing.
• Leerink analyst Puneet Souda said the double-digit decline in the software business was expected, though "investor scrutiny is likely to remain given noise surrounding AI product launches."
• The company posted adjusted profit of $1.41 per share and revenue of $730 million during the second quarter, topping analysts' estimates of $1.22 per share and $709.1 million, respectively, according to LSEG data.
• The company now expects annual sales of $2.83 billion to $2.86 billion, compared with its previous forecast of $2.81 billion to $2.84 billion.
• It also forecast 2026 adjusted profit per share between $5.30 and $5.40, compared with its prior view of $5.20 to $5.30. Analysts expect an annual adjusted profit of $5.27 per share.
• Revvity's diagnostics business rose 11% from a year earlier to $371 million in the second quarter.