Revvity (ticker: RVTY) experienced a significant drop in stock value on Monday following its third-quarter earnings report. The health sciences company failed to meet analysts' expectations and also revised its 2023 earnings outlook.

In the third quarter, Revvity reported earnings of $1.18 per share, generating $670.7 million in revenue. This fell short of the anticipated earnings of $1.19 per share on sales of $695.4 million, according to FactSet.

Comparing to the previous year, Revvity's profit dropped from $1.21 per share to $1.18 per share, with revenue declining from $711.8 million to $670.7 million.

Chief Executive Prahlad Singh acknowledged the challenging market conditions but highlighted their solid performance during this period. Singh stated, "During this period of increased market uncertainty, we will focus our efforts on those factors we can control to ensure the company emerges from this period in an even stronger and more agile position."

The management attributed the downturn in demand for the company's pharma and biotech customers as the primary reason for a 1.6% decline in revenue within their life sciences business.

In addition to disappointing results, Revvity adjusted its fiscal 2023 earnings outlook downward. The company now expects earnings to range between $4.53 and $4.57 per share, compared to the previous guidance of $4.70 to $4.90 per share. Similarly, new revenue expectations were revised to be in the range of $2.72 billion to $2.74 billion, down from the previous estimates of $2.8 billion to $2.85 billion.

As a consequence, Revvity stock plummeted by 18% to $80.18. This marks its largest percentage decrease since December 2008 and the lowest closing price since April 2020, according to Dow Jones Market Data. For the year, Revvity has experienced a drastic 43% decline, making it one of the worst-performing stocks in the S&P 500 on Monday.

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