(Reuters) - Revvity on Monday beat Wall Street estimates for its quarterly profit and revenue, helped by better-than-expected demand for equipment in its diagnostics unit.
Contract drug manufacturers and equipment makers witnessed their biotech clients cut back on spending in 2023 amid rising interest rates, but some analysts have said that funding could stabilize this year after a strong 2023 for regulatory approvals in the U.S.
In February, Revvity said the pressures will continue over at least the next couple of quarters, with expectations for stabilization in the second half of the year.
The company, which generates more than half of its sales outside the United States, lowered its annual revenue forecast to between $2.76 billion and $2.82 billion from its previous range of $2.79 billion to $2.85 billion due to a strong dollar.
Analysts on average estimate revenue for the period to be $2.82 billion, according to LSEG data.
It also reaffirmed its annual adjusted profit forecast of $4.55 to $4.75 per share.
For the quarter ended March 31, Revvity reported total sales of $649.92 million, compared with analysts' expectations of $646.84 million.
Revenue from its diagnostics segment, which provides testing tools such as for genetic screening, was flat year-on-year at $347.09 million, compared with estimates of $344.19 million.
Revvity reported first-quarter adjusted profit of 98 cents per share compared with estimates of 93 cents per share.
Formerly known as PerkinElmer (NYSE:RVTY), the company in 2022 divested from three of its businesses to focus on life sciences and diagnostics units under its new name Revvity.