(Reuters) – Revvity Inc cut its full-year sales and revenue forecasts after missing Wall Street estimates for third-quarter results, hurt by weak demand for its supplies to life science researchers and diagnostic solutions.
A rise in interest rates has squeezed funding for drug developments by biotech companies running low on cash, weighing on demand for contract research services and lab equipment offered by Revvity.
Shares of the Waltham, Massachusetts-based company fell 8% before the bell.
The company now expects its annual revenue to be between $2.72 billion and $2.74 billion, compared with its prior forecast of $2.80 billion to $2.85 billion. It also fell short of analysts’ average estimate of $2.83 billion, according to LSEG estimates.
Revvity also lowered its forecast for annual adjusted profit to the range of $4.53 per share to $4.57 per share from $4.70 per share to $4.90 per share it previously expected.
Analysts were expecting an adjusted profit of $4.79 per share for the year.
The company’s third-quarter revenue came in at $670.74 million, missing analysts’ estimates of $695.33 million.
Its life sciences unit, which provides medical technologies and lab equipment used in the discovery of new drugs, posted sales of $308 million, down 1.6% from a year earlier.
Revenue from its diagnostics segment, which provides testing tools such as for genetic screening, fell 9% to $363 million, compared with last year.
On an adjusted basis, the company made a profit of $1.18 per share, falling short of analysts’ estimates of $1.19 per share.
Formerly known as PerkinElmer, the company last year divested three of its businesses to focus on life sciences’ and diagnostics’ units under its new name Revvity.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shweta Agarwal)
