(Reuters) – Medical equipment maker Revvity raised its annual profit forecast on Monday, after beating second-quarter results estimates on better-than-expected demand for its diagnostic products.
The Massachusetts-based company’s shares were up 6.7% before the bell.
Biotech clients of contract drug manufacturers and diagnostic equipment makers cut back on spending in 2023 amid rising interest rates.
However, some analysts have said funding could stabilize this year after regulatory approvals for related companies in the United States were strong in 2023.
Revvity forecast annual adjusted profit between $4.70 and $4.80 per share, up from its prior view of $4.55 to $4.75.
Analysts were expecting a profit of $4.63 per share in 2024, according to LSEG data.
The company, which generates more than half of its sales outside the United States, tightened its full-year revenue forecast to between $2.77 billion and $2.79 billion due to a strong dollar from its prior view of $2.76 billion to $2.82 billion.
The latest forecast also assumes a 2% organic revenue growth.
Revvity reported total sales of $691.7 million in the second quarter, compared with analysts’ estimates of $690.4 million.
Revenue from its diagnostics segment, which provides testing tools for processes such as genetic screening, rose 1.4% to $378.1 million.
Revvity’s quarterly adjusted profit was $1.22 per share, beating estimates of $1.12.
Formerly known as PerkinElmer, the company in 2022 divested three of its businesses to focus on life sciences and diagnostics units.
(Reporting by Puyaan Singh; Editing by Shreya Biswas)
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