As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at research tools & consumables stocks, starting with Revvity (NYSE:RVTY).
The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.
The 10 research tools & consumables stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.5% below.
Luckily, research tools & consumables stocks have performed well with share prices up 11.1% on average since the latest earnings results.
Revvity (NYSE:RVTY)
Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE:RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.
Revvity reported revenues of $720.3 million, up 4.1% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ revenue estimates but a slight miss of analysts’ full-year EPS guidance estimates.
“The power of Revvity's transformation and consistent execution were evident in our second-quarter performance, enabling us to exceed expectations despite the evolving market environment,” said Prahlad Singh, president and chief executive officer of Revvity.
Unsurprisingly, the stock is down 12.1% since reporting and currently trades at $91.14.
Is now the time to buy Revvity? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Sotera Health Company (NASDAQ:SHC)
With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.
Sotera Health Company reported revenues of $294.3 million, up 6.4% year on year, outperforming analysts’ expectations by 6.8%. The business had a stunning quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue estimates.
Sotera Health Company scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 42.3% since reporting. It currently trades at $15.99.
Is now the time to buy Sotera Health Company? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Bruker (NASDAQ:BRKR)
With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ:BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.
Bruker reported revenues of $797.4 million, flat year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
Bruker delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 2.8% since the results and currently trades at $36.91.
Read our full analysis of Bruker’s results here.
Bio-Techne (NASDAQ:TECH)
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ:TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Bio-Techne reported revenues of $317 million, up 3.5% year on year. This number topped analysts’ expectations by 0.7%. Overall, it was a satisfactory quarter as it also put up a beat of analysts’ EPS estimates.
The stock is up 10.7% since reporting and currently trades at $60.45.
Read our full, actionable report on Bio-Techne here, it’s free for active Edge members.
Agilent (NYSE:A)
Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE:A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.
Agilent reported revenues of $1.74 billion, up 10.1% year on year. This result surpassed analysts’ expectations by 4.3%. Overall, it was a strong quarter as it also logged revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ organic revenue estimates.
Agilent scored the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 16.3% since reporting and currently trades at $138.04.
Read our full, actionable report on Agilent here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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