WALTHAM, Mass. - Revvity, Inc. (NYSE: RVTY), a provider of health science solutions, has introduced a new optical character recognition (OCR) service, Revvity Transcribe AI, aimed at transforming the way clinical laboratories handle test request forms. The service, which converts handwritten text into digital data, is designed to improve efficiency and accuracy in laboratories by reducing the reliance on manual data entry.
The new technology is particularly geared towards newborn screening (NBS (LON:NBS)) laboratories, where processing handwritten dried blood spot (DBS) test cards is a daily task. Revvity Transcribe AI, which is compatible with Revvity's EVOYA™ platform, is reported to increase data entry workflow speed by 40 percent, including data validation steps.
Norm Lord, vice president of digital products at Revvity, highlighted the benefits of the service, saying, "This innovative service ensures that the digitized data is securely processed and seamlessly integrated into laboratory information management systems for review and verification. By automating this manually intensive process, Revvity Transcribe AI allows laboratory personnel to concentrate on other essential and time-sensitive tasks."
The introduction of Revvity Transcribe AI took place at the 2024 APHL Newborn Screening Symposium held from October 20-24 in Omaha, Nebraska. The company emphasized that the data processed by the service is secure, adhering to ISO27001 standards.
Revvity, with reported 2023 revenues exceeding $2.7 billion and a workforce of over 11,000 employees, serves a global customer base in various sectors, including pharmaceuticals, biotech, diagnostic labs, academia, and government. The company is a part of the S&P 500 index and operates in more than 190 countries.
This announcement is based on a press release statement from Revvity.
In other recent news, Revvity Inc. has been recognized for its robust financial performance in the second quarter of 2024. Despite a 1% dip in organic revenue, the company reported strong growth in its signal software and diagnostics divisions, a notable 29% adjusted operating margin, and an adjusted earnings per share (EPS) of $1.22. This led to over $300 million in free cash flow and a gain of $150 million from the divestiture of the PerkinElmer (NYSE:RVTY) Analytical & Enterprise Services business.
Analysts from Barclays (LON:BARC), TD Cowen, Baird, and BofA Securities responded to these developments by raising their price targets for Revvity. Barclays upgraded Revvity's stock from Equalweight to Overweight and increased the price target to $140, while TD Cowen and Baird set their price targets at $141 and $136 respectively. BofA Securities raised its price target from $118.00 to $127.00, while maintaining a Neutral rating on the stock.
The analysts' confidence in Revvity is based on the company's strong market performance and potential for growth and profitability. They expect Revvity to continue to outperform the market and most of its peers in terms of core growth and profit margins. The company's management is also credited for executing against conservative targets, which provides a safety cushion against potential market demand declines.
Revvity's future plans include aggressive share repurchasing and a commitment to innovation, such as the introduction of new automated workflows and the integration of artificial intelligence in operations and product development. These recent developments underscore Revvity's strategic agility in navigating industry challenges and its dedication to growth and innovation.
InvestingPro Insights
Revvity's introduction of Transcribe AI aligns with the company's focus on innovation and efficiency in the health science sector. According to InvestingPro data, Revvity boasts a market capitalization of $14.71 billion, reflecting its significant presence in the industry. The company's commitment to technological advancement is further supported by its strong financial position, with revenue of $2.71 billion in the last twelve months as of Q2 2024, closely matching the 2023 figure mentioned in the article.
InvestingPro Tips highlight that Revvity's net income is expected to grow this year, which could be partly attributed to efficiency-enhancing innovations like Transcribe AI. Additionally, the company has maintained dividend payments for 54 consecutive years, demonstrating a consistent return to shareholders alongside its investment in new technologies.
The stock's performance has been notable, with a 17.59% total return over the past year. This positive trend may reflect investor confidence in Revvity's strategic initiatives, such as the newly launched OCR service.
For readers interested in a deeper analysis, InvestingPro offers 11 additional tips for Revvity, providing a more comprehensive view of the company's financial health and market position.
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