(Reuters) – Revvity cut its 2024 revenue forecast as reduced biotech spending and a strong dollar weigh on demand for its tools and services used in drug development.
The diagnostic products and scientific tools manufacturer now expects annual revenue between $2.75 billion and $2.77 billion, down from its previous $2.77 billion to $2.79 billion range.
However, Revvity raised its annual adjusted per-share profit forecast to $4.83-$4.87 from $4.70-$4.80. The company’s board also authorized a new two-year, $1 billion share repurchase program, replacing the remaining $600 million program announced in May 2023.
The company, which generates over half its sales outside the United States, has faced challenges from reduced biotech client spending. Recent interest rate cuts could improve the funding environment for biotechs as borrowing costs ease.
Last month, its larger rival Danaher reported better-than-expected quarterly profit but noted weak demand from smaller biotech firms and flagged concerns about the market in China.
The company, formerly known as PerkinElmer, divested three of its businesses in 2022 to focus on life sciences and diagnostics units.
Revenue from its Life Sciences segment, which offers services and products for drug discovery, was $301 million, missing analysts’ expectation of $306.15 million, according to data compiled by LSEG.
Total revenue came in at $684.1 million for the quarter ended Sept. 29, beating analysts’ expectations of $679.65 million on strong diagnostic equipment demand.
Revvity also beat earnings estimates, reporting an adjusted profit of $1.28 per share compared to analysts’ estimates of $1.13 per share.
The Massachusetts-based company’s shares were down 1.6% before the bell.
(Reporting by Christy Santhosh in Bengaluru; Editing by Tasim Zahid)
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