Revvity sinks after slashing its full-year profit outlook
The medical equipment maker said demand in China is cooling as new insurance reimbursement policies take effect.
Shares of Revvity were down nearly 8% Monday afternoon after the medical equipment maker topped Q2 expectations but slashed its full-year profit forecast.
The company said it now expects adjusted earnings of $4.85 to $4.95 per share in 2025, down from its previous guidance range of $4.90 to $5.00. Revvity posted a solid second quarter, with sales hitting $720 million, topping Wall Street’s $710.4 million estimate.
The outlook cut comes as hospitals in China have started ordering fewer of Revvity’s higher-end diagnostic tests, which check for multiple conditions at once. A new cost-cutting policy tied to insurance reimbursements is pushing hospitals in the country to buy simpler, cheaper tests instead.
As a result, Revvity’s diagnostic sales in China dropped by double digits last quarter. The company now expects only low single-digit growth from that part of the business this year, down from its previous forecast of mid-single-digit growth.
Revvity shares are down about 15% year to date.
