By Siddhi Mahatole
(Reuters) -Medical equipment maker Revvity on Monday joined larger peers in warning about the impact of tariffs imposed by the U.S. President Donald Trump’s administration, but maintained its annual profit outlook.
Shares of the company, which have fallen 14.2% so far this year, rose 1.8% in morning trading.
Revvity anticipates a $135 million impact from tariffs on China; however, plans cost-saving measures and expects to benefit from a weaker dollar due to generating more than half its revenue outside the U.S.
It is also planning to make adjustments to its manufacturing footprint and is in discussions with alternative suppliers.
The warnings came after Revvity posted first-quarter results above Wall Street estimates on steady demand for tools used in medical research.
Last week, peers Thermo Fisher Scientific and Danaher, also posted strong quarterly results and warned of a potential hit to results due to a looming threat of tariffs and other uncertainty.
However, Revvity, unlike Thermo Fisher, maintained its outlook for a $4.90 to $5 per share profit and 3% to 5% of organic revenue growth.
Leerink analyst Puneet Souda said that Revvity’s results “appear to be holding up better” despite challenges from tariffs and the U.S. government’s proposed cuts to academic research funding.
U.S. academic customers represent a little over 5% of total revenues, and a “more cautious level of spending” from them is expected to persist, said chief financial officer Max Krakowiak.
Revvity raised its annual sales forecast to a range of $2.83 billion to $2.87 billion, from $2.80 billion to $2.85 billion.
The company earned a quarterly adjusted profit of $1.01 per share, above analysts’ estimate of 95 cents per share, according to LSEG data.
It reported first-quarter revenue of $664.8 million, beating the estimate of $661.2 million.
(Reporting by Siddhi Mahatole and Bhanvi Satija in Bengaluru; Editing by Vijay Kishore)
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