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Globe and Mail
a day ago
- Business
- Globe and Mail
RVTY Posts Q2 Earnings & Sales Beat, Raises '25 Sales View
Revvity, Inc. RVTY reported second-quarter 2025 adjusted earnings per share (EPS) of $1.18, which beat the Zacks Consensus Estimate of $1.14 by 3.5%. The bottom line, however, declined 3.3% from the year-ago quarter's level. GAAP EPS from continuing operations was 46 cents compared with 45 cents in the prior-year period. Revenue Details Based in Waltham, MA, this leading MedTech company reported revenues of $720.3 million, up 4.1% year over year and 3% organically. The top line beat the Zacks Consensus Estimate by 1.2%. Segmental Details Revvity reports under two operating segments — Life Sciences and Diagnostics. Life Sciences Revenues from this segment totaled $365.9 million, up 4% organically from the year-ago quarter's level. Adjusted operating income amounted to $115 million, down 2.5% from the prior-year quarter's figure. Diagnostics This segment's revenues totaled $354.4 million, up 3% on a year-over-year basis. Organically, the top line increased 2% year over year. Adjusted operating income amounted to $89 million, down 4.3% from the year-ago quarter's figure. Margin Analysis Selling, general and administrative expenses totaled $248.5 million, down 1.2% year over year. Research and development expenses amounted to $53.3 million, up 10.7% from the year-ago quarter's reported number. Adjusted operating income declined 3.6% to $191.8 million from the year-ago quarter's level. Adjusted operating margin, as a percentage of revenues, was 26.6%, contracting 220 basis points. Financial Update The company exited the second quarter of 2025 with cash and cash equivalents of $991.8 million compared with $1.14 billion at the end of the prior quarter. Net cash provided by operating activities totaled $134.3 million compared with $158.6 million in the year-ago quarter. 2025 Guidance Revvity lowered its earnings outlook but raised its revenue guidance for 2025. The company expects adjusted EPS to be in the range of $4.85-$4.95 (up from the earlier guidance of $4.90-$5.00). Revenues are now anticipated to be in the band of $2.84-$2.88 billion (previously $2.83-$2.87 billion). The Zacks Consensus Estimate for EPS and revenues is pegged at $4.82 and $2.85 billion, respectively. Our Take Revvity exited the second quarter of 2025 on a strong note, with both earnings and sales beating estimates and improving year over year. The company raised its revenue outlook due to a favorable currency movement as well as organic growth. The projection is now expected to grow 2-4% organically. Shares of RVTY were down 5.9% during pre-market trading, likely due to a lower EPS outlook. The company's shares have lost 7.1% so far this year compared with the industry 's decline of 5.2%. The S&P 500 Index is up 8.2% in that period. Image Source: Zacks Investment Research However, solid execution across both Life Sciences and Diagnostics segments underscores the strength of its diversified portfolio. With momentum clearly building and management reaffirming full-year targets, Revvity is well-positioned to navigate ongoing challenges and capitalize on emerging opportunities, setting a confident tone for the remainder of 2025. Last month, RVTY announced the launch of its new IDS i20 analytical random access platform from EUROIMMUN, enabling full automation of chemiluminescence immunoassays. In May, RVTY announced the launch of three Mimix reference standards for IVD use, designed for monitoring of next-generation sequencing (NGS) or droplet digital polymerase chain reacting (ddPCR) assays designed to detect somatic mutations in genomic DNA (gDNA) from human samples for IVD use. These should bring additional sales in the upcoming quarter, driving top-line growth further. Moreover, the favorable ruling for RVTY in February in a litigation with its partner, Cloud Software Group, ensured uninterrupted access to the latter's Spotfire software. This will support Revvity and its customers' operational continuity and service quality. RVTY's Zacks Rank & Stocks to Consider RVTY carries a Zacks Rank #3 (Hold) at present. Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Align Technology ALGN, Cardinal Health, Inc. CAH and Cencora, Inc. COR. The Zacks Consensus Estimate for Align Technology's second-quarter 2025 adjusted EPS is currently pegged at $2.57. The consensus estimate for revenues is pegged at $1.06 billion. ALGN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Align Technology has an estimated long-term growth rate of 11.2%. However, ALGN's earnings yield is 5.1% compared with the industry's 5.4%. Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03 and the same for revenues is pinned at $60.67 billion. Cardinal Health has an estimated long-term growth rate of 10.9%. CAH's earnings yield of 5.7% compares favorably with the industry's 5.5%. Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pinned at $80.33 billion. Cencora has an estimated long-term growth rate of 12.8%. COR's earnings yield of 5.4% compares favorably with the industry's 4.1%. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Align Technology, Inc. (ALGN): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report
Yahoo
2 days ago
- Business
- Yahoo
Revvity trims 2025 profit forecast on soft demand for diagnostics in China
(Reuters) -Medical equipment maker Revvity on Monday lowered its full-year adjusted profit forecast as it expects demand for its diagnostics products in some international markets to remain soft, sending the company's shares down 8% premarket. The company, which makes more than 50% of its annual revenues from markets outside the United States, said sales of its diagnostics products in China, a key market, declined by double digits during the second quarter. Revvity said last quarter that it expected to take a $135 million hit from potential tariffs on China. It planned to adjust its manufacturing footprint and was in discussions with alternative suppliers, to mitigate impact from tariffs. The Massachusetts-based company now expects adjusted profit for 2025 between $4.85 and $4.95 per share, compared with its previous forecast of $4.90 to $5.00 per share. Analysts were expecting a profit of $4.93 per share, according to data compiled by LSEG. Revvity expects revenue of $2.84 billion to $2.88 billion for the full year, helped in part by a weaker U.S. dollar. It had previously forecast annual revenue of $2.83 billion to $2.87 billion and analysts were expecting $2.85 billion. The forecast cut from Revvity is in contrast to results from its peers Thermo Fisher Scientific and Danaher, which raised their annual profit forecasts last week. Second-quarter results, however, came in line with industry peers, as Revvity posted strong quarterly profit and sales of its life sciences products were $365.9 million, above estimates of $353.9 million. Thermo Fisher, Danaher and others have flagged robust demand across regions for their drug development products such as instruments and analytical tools used in trials and manufacturing, after two years of weak biotech funding. Sign in to access your portfolio
Yahoo
22-07-2025
- Business
- Yahoo
Danaher Q2 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
Danaher Corporation's DHR second-quarter 2025 adjusted earnings of $1.80 per share beat the Zacks Consensus Estimate of $1.64. The bottom line increased 4.7% year over reported net sales of $5.94 billion, which beat the consensus estimate of $5.84 billion. The metric increased 3.5% year over year, driven by impressive performance of all the core sales increased 1.5% year over year in the quarter. Foreign-currency translations had a positive impact of 2%. DHR's Segmental Discussion Revenues from the Life Sciences segment totaled $1.78 billion, up 0.5% year over year. We expected the segment's revenues to be $1.71 billion. However, core sales decreased 2.5% year over year. Acquisitions/divestitures had a positive impact of 1.5% on segmental sales while foreign-currency translations also had a positive impact of 1.5%. Operating loss was $239 million against operating profit of $233 million in the year-ago quarter. Revenues from the Diagnostics segment totaled $2.31 billion, up 2% year over year. Our estimate for revenues was $2.29 billion. Core sales increased 2% year over year, while foreign currency had a positive impact of 0.5% on sales. However, acquisitions/divestitures impacted sales by 0.5%. Operating profit was $554 million, down 0.4% on a year-over-year from the Biotechnology segment totaled $1.85 billion, up 8% year over year. Our estimate was $1.83 billion. Core sales increased 6% year over year while foreign-currency translations had a positive impact of 2%. Operating profit was $531 million, up 14.9% year over year. Danaher Corporation Price, Consensus and EPS Surprise Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote Danaher's Margin Profile In the second quarter, Danaher's cost of sales increased 4.2% year over year to $2.41 billion. Gross profit of $3.52 billion increased 2.8% year over year. The gross margin was 59.3% compared with 59.7% in the year-ago general and administrative expenses of $2.36 billion recorded an increase of 26.3% on a year-over-year basis. Research and development expenses were $403 million, up 3.1% year over operating profit decreased 34.9% year over year to $760 million. Operating margin contracted to 12.8% from 20.3% in the year-ago quarter. DHR's Balance Sheet and Cash Flow Exiting the second quarter, DHR had cash and equivalents of $2.96 billion compared with $2.1 billion at 2024-end. Long-term debt was $16.9 billion at the end of the quarter compared with $15.5 billion at the end of December generated net cash of $2.64 billion from operating activities in the first six months of 2025 compared with $3.16 billion in the previous year's comparable period. Capital expenditures totaled $493 million in the same period, down 14.7% year over year. Adjusted free cash flow decreased 16.5% year over year to $2.15 billion in the first six months of the same period, DHR paid out dividends of $423 million, up 12.2% on a year-over-year basis. Danaher's Outlook For the third quarter, Danaher expects adjusted core sales from continuing operations to increase in the low single digits on a year-over-year metric is anticipated to increase approximately 3% on a year-over-year basis in 2025. The company expects adjusted earnings to be $7.70-$7.80 per share compared with $7.60-$7.75 expected earlier. DHR's Zacks Rank The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of Other Companies Quest Diagnostics Inc.'s DGX second-quarter 2025 adjusted earnings per share (EPS) of $2.62 beat the Zacks Consensus Estimate by 1.9%. The metric also exceeded the year-ago adjusted figure by 11.5%.Revenues reported in the second quarter rose 15.2% year over year to $2.76 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.Tenet Healthcare Corporation THC reported earnings of $4.02 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $2.84. This compares with earnings of $2.31 per share a year company posted revenues of $5.27 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.43%. This compares with year-ago revenues of $5.1 billion. Medpace Holdings, Inc. MEDP came out with quarterly earnings of $3.1 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $3 per share. This compares with earnings of $2.75 per share a year posted revenues of $603.31 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.48%. This compares with year-ago revenues of $528.1 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Is Hologic Stock a Risky Investment Ahead of Its Q3 Earnings Report?
Hologic HOLX is set to release third-quarter fiscal 2025 results on July 30, after the closing bell. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) suggests a 0.9% decrease year over year to $1.05. The estimate has dropped by 1 cent in the past 60 days. The Zacks Consensus Estimate for third-quarter revenues currently stands at $1.01 billion, suggesting a 0.4% decline year over year. The U.S. medical device maker focusing on women's health has a mixed record over the trailing four quarters. It topped estimates in three quarters and missed on one occasion. On average, the earnings surprise came in at 1.23%. Q3 Earnings Whispers for HOLX Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here. Earnings ESP: Hologic has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks Rank #1 stocks here. Factors Shaping Hologic's Q3 Performance Starting with the largest division, Diagnostics' performance in the fiscal third quarter may have been mixed. Molecular Diagnostics is expected to have favorably impacted revenues, with the BV/CV/TV assay being a key contributor. Hologic has been working to drive awareness and reimbursement of the test to address a large unmet need in the U.S. vaginitis market. The Biotheranostics oncology business is likely to have continued to benefit from the ongoing adoption of the Breast Cancer Index ('BCI') test. However, the loss of the HIV testing business in Africa following the halt of USAID funding is expected to have weighed on growth. In cytology and perinatal businesses, Hologic is likely to have witnessed the robust U.S. adoption of the Genius AI product. Meanwhile, international performance is expected to have suffered, particularly due to ongoing headwinds in China. Tariffs, increasing local competition and rising anti-American sentiment, along with more available alternatives, are expected to affect overall segment results. Our model forecasts a 1.1% decline year over year in Diagnostics revenues to $436 million. We also expect the company's Breast Health segment to sustain the recent downward trend from lower capital equipment sales. However, recurring service revenues — tied to Hologic's large installed base — may have helped offset some declines. Endomagnetics is likely to have entered the second half of the year with strong momentum, positively contributing to the Interventional Breast portfolio. Still, tariffs are expected to have posed challenges as a bulk of these products are manufactured outside the United States. According to our model, Breast Health revenues in the fiscal third quarter are likely to decrease 4.7% year over year to $366.8 million. Similarly, the GYN Surgical segment also may have faced tariff pressure in the fiscal third quarter, given that a majority of these products are made in Costa Rica. Despite that, robust international sales are likely to have supported growth. The Fluent Pro Fluid Management System may have continued gaining traction. Further, ongoing integration of the newly acquired Gynesonics is expected to have positively contributed to Hologic's revenues in the to-be-reported quarter. Our model forecasts Surgical division revenues to improve 6.4% year over year to $177.3 million. Further, Hologic's production ramp-up of the Horizon DXA system in Skeletal Health in the second quarter is likely to have been carried into the to-be-reported quarter as well. Our model estimates 40.2% growth in the Skeletal business, reaching $26.6 million. HOLX Stock Price Performance & Valuation In the past year, Hologic shares have declined 18.5%, steeper than the industry's 15.7% fall and the Zacks Medical sector's 17.6% drop. The company also underperformed peers Abbott ABT and QIAGEN QGEN, which have risen 19.6% and 12.8%, respectively. HOLX One-Year Price Comparison Valuation-wise, Hologic is trading at a forward five-year Price/Sales (P/S) of 3.35X, lower than the industry average of 4.01X. The stock is graded a Value Score of B at present. HOLX 5-Year P/S Ratio Hologic's Investment Consideration Hologic continues to yield robust growth and durability, benefiting from its presence in both Diagnostics and Medtech. Across each of its franchises, the company offers products that are widely recognized and often seen as the standard of care, such as ThinPrep and cervical cancer screening on Panther instrument in Molecular Diagnostics, 3D Genius mammography in Breast Health business and MyoSure for the treatment of fibroids in the Surgical business. Hologic's international business also drives strong top-line performance, reflecting its ability to capture potential opportunities into reality. Backed by a strong balance sheet and disciplined approach to capital allocation, the company continues to strengthen its foundation with acquisitions like Endomagnetics and Gynesonics. That said, Hologic remains exposed to macroeconomic volatility. Tariffs tied to its manufacturing activities in Costa Rica and China could increase inventory acquisition costs by $20-$25 million per quarter in fiscal 2025, pressuring margins. The company reduced its China revenue forecast by $20 million amid tougher operating conditions, now projecting only $50 million. Further, currency headwinds forecasted for this year are approximately $10-$15 million. Hologic expects a low-single-digit decline in Breast Health, while Diagnostics growth is expected to be limited by Africa weakness and lower sales in China. How to Play HOLX Stock? Hologic's weak top and bottom-line projections for the fiscal third quarter, together with industry and broader macroeconomic challenges weighing on business segments, are likely to continue dragging its stock performance. While the company has several key drivers that promise long-term growth, including valuable inorganic additions, its near-term headwinds warrant a more cautious stance. Hence, at this stage, HOLX stock may not present a favorable entry point. Those already invested may find it wise to exit. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Abbott Laboratories (ABT): Free Stock Analysis Report Hologic, Inc. (HOLX): Free Stock Analysis Report QIAGEN N.V. (QGEN): Free Stock Analysis Report
Globe and Mail
17-07-2025
- Business
- Globe and Mail
Abbott Reports 10.5% EPS Growth for Fiscal Q2
Key Points Q2 revenue beat expectations at $11.14 billion, up 7.4% year over year. Adjusted EPS exceeded estimates, reaching $1.26 for Q2 2025, representing 10.5% growth year over year. Medical Devices achieved strong double-digit growth, while the Diagnostics segment in China saw ongoing pressure. These 10 stocks could mint the next wave of millionaires › Abbott Laboratories (NYSE:ABT), a global healthcare company known for its medical devices, diagnostics, nutrition, and pharmaceuticals, reported fiscal 2025 earnings on Thursday, July 17, that narrowly topped analysts' consensus estimates. Q2 revenue climbed to $11.14 billion, surpassing the analyst estimate of $11.06 billion, and adjusted earnings per share came in at $1.26, beating the consensus by $0.01. These results reflect robust year-over-year growth, especially in the company's Medical Devices segment, which reported year-over-year sales growth of 13.4%, but also highlight continued headwinds in its Diagnostics business, mainly in China. Overall, the company achieved margin expansion and affirmed management's full-year outlook despite tariff pressures and competitive and regulatory challenges overseas. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Change (YOY) Adjusted EPS $1.26 $1.25 $1.14 10.5% Revenue $11.14 billion $11.06 billion $10.38 billion 7.4% Adj. operating margin 22.9% 21.9% 100 bps Net earnings $2.21 billion $2.00 billion 10.5% Source: Abbott Laboratories. Note: Analysts' consensus estimates for the quarter provided by FactSet. YOY = Year over year. bps = basis points. Understanding Abbott Laboratories' Business Abbott Labs operates across four main segments: medical devices, diagnostics, nutrition, and pharmaceuticals. Its product range includes continuous glucose monitors for diabetes care, implantable heart devices, laboratory diagnostic analyzers, and nutritional products such as Ensure and Glucerna. The company serves customers in over 160 countries, generating a significant portion of sales internationally. The company's ongoing strategy centers on technological innovation, shown in products like its FreeStyle Libre system for continuous glucose monitoring, and compliance with evolving global health regulations. Its global footprint supports market access and supply chain resilience. Success depends on delivering new technology, defending market share, and adapting to changing healthcare policies and competitive pressures. Second-Quarter Highlights The Medical Devices segment was the standout performer. Sales for the segment reached $5.37 billion, up 13.4%, with especially strong contributions from Diabetes Care, Heart Failure, Structural Heart, and Electrophysiology subsegments. Continuous glucose monitoring systems, like the FreeStyle Libre, generated $1.9 billion in revenue -- up 21.4% on a reported basis -- helped by robust adoption in both the U.S. and international markets. New launches, such as Navitor for heart valves and AVEIR leadless pacemakers, also fueled growth. Diagnostics segment sales came in at $2.17 billion, declining 1% from last year. The primary factor was a sharp drop in COVID-19 testing sales, now down to $55 million from $102 million a year earlier. Core Laboratory Diagnostics grew slightly, but ongoing price cuts from China's volume-based procurement program pressured overall segment results. While diagnostics achieved roughly 7% growth outside China in Q1 2025, this did not fully make up for the shortfall in that market. CEO Robert Ford noted the challenge, highlighting that recent changes in Chinese procurement have led to lower prices without offsetting volume gains -- a departure from past patterns. Nutrition revenue was $2.21 billion, up 2.9% on a reported basis. Adult Nutrition -- driven by Ensure and Glucerna brands -- grew 6.1% on a reported basis, while Pediatric Nutrition organic sales remained nearly flat, reflecting a continuing squeeze in international pediatric sales, which fell 5.7%. The adult product growth offset ongoing softness in pediatric lines. Pharmaceutical sales, mostly in established branded generics outside the United States, rose 6.9% on a reported basis, with double-digit gains in emerging markets across Asia, Latin America, and the Middle East. Adjusted operating margin rose to 22.9%, a 100 basis point increase from the prior year. Management cautioned that tariffs introduced in 2025 posed a 'few hundred million dollar' headwind for the second half of the year, but indicated that mitigation strategies -- such as adjusting manufacturing footprints and leveraging foreign exchange rates -- remain in progress. Net earnings reached $2.21 billion. Abbott Laboratories also maintained a quarterly dividend of $0.59 per share, extending its streak of increases to 53 consecutive years. Future Outlook and What to Watch Looking ahead, management reaffirmed its full-year guidance despite new tariff costs. For fiscal 2025, it projects organic sales growth (excluding COVID-19 testing-related sales) of 7.5% to 8.0%, and full-year adjusted EPS in the $5.10–$5.20 range. Third-quarter 2025 adjusted EPS is expected to be between $1.28 and $1.32. Abbott also guided to an adjusted operating margin of 23.5%, implying further focus on efficiency and cost controls. Management sees new product launches and recovery in underperforming segments as growth drivers for the back half of 2025. Investors should closely monitor the ongoing impact of global tariffs, continued performance in the Diagnostics segment -- especially in China -- and the pace at which the company launches new products in its medical devices pipeline. International pediatric nutrition trends also bear watching, given ongoing weakness. Planned mitigation efforts around tariffs and supply chain reshuffling, along with the evolving clinical and regulatory landscape, are likely to influence the company's performance as 2025 progresses. Note: Revenue and net income are presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,059%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 14, 2025
