Let’s dig into the relative performance of Revvity (NYSE: RVTY) and its peers as we unravel the now-completed Q1 research tools & consumables earnings season.

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 mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.5% above.

Thankfully, share prices of the companies have been resilient as they are up 6.1% 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 $664.8 million, up 2.3% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates.

“Revvity navigated a dynamic environment and delivered strong first quarter results,” said Prahlad Singh, president and chief executive officer of Revvity.

Interestingly, the stock is up 7.7% since reporting and currently trades at $101.50.

Is now the time to buy Revvity? Access our full analysis of the earnings results here, it’s free.

Best Q1: Danaher (NYSE: DHR)

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Danaher reported revenues of $5.74 billion, flat year on year, outperforming analysts’ expectations by 2.7%. The business had a very strong quarter with an impressive beat of analysts’ organic revenue and EPS estimates.

The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $204.55.

Is now the time to buy Danaher? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Avantor (NYSE: AVTR)

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE: AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.58 billion, down 5.9% year on year, falling short of analysts’ expectations by 1.6%. It was a softer quarter as it posted a miss of analysts’ organic revenue and EPS estimates.

Avantor delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 12.2% since the results and currently trades at $13.58.

Read our full analysis of Avantor’s results here.

Waters Corporation (NYSE: WAT)

Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.

Waters Corporation reported revenues of $661.7 million, up 3.9% year on year. This result topped analysts’ expectations by 1.2%. It was a satisfactory quarter as it also produced a narrow beat of analysts’ organic revenue estimates.

The stock is up 1.2% since reporting and currently trades at $352.91.

Read our full, actionable report on Waters Corporation here, it’s free.

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 $316.2 million, up 4.2% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business.

The stock is up 12.4% since reporting and currently trades at $53.55.

Read our full, actionable report on Bio-Techne here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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