(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.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shailesh Kuber)
Comments