Thermo Fisher Scientific’s Earnings Outlook Ahead of Q1 Fiscal 2025

Waltham, Massachusetts-based Thermo Fisher Scientific Inc. (TMO) is a prominent provider of life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. With a market capitalization of $165.2 billion, the company offers a range of reagents, instruments, and consumables for research, drug development, and disease diagnosis. Thermo Fisher is set to announce its fiscal first-quarter earnings for 2025 before markets open on Wednesday, April 23.

Projected Earnings Performance

As the earnings announcement approaches, analysts anticipate TMO will report a profit of $5.11 per share on a diluted basis. This figure remains consistent with last year’s results. Notably, in its last four quarterly reports, the company has consistently exceeded Wall Street’s earnings-per-share (EPS) expectations.

For the full fiscal year, analysts forecast TMO’s EPS to reach $23.30, marking a 6.6% increase from $21.86 in fiscal 2024. Additionally, they project a further rise of 9.7% to $25.57 in fiscal 2026.

Stock Performance and Market Context

Over the past 52 weeks, TMO has significantly underperformed, with shares down 27.6%. This decline contrasts with the S&P 500’s loss of 4.2% and the Health Care Select Sector SPDR Fund’s (XLV) dip of 6.9% during the same period.

The company faces headwinds attributed to slow revenue growth, rising expenses, and disappointing returns in its core business. Additionally, Thermo Fisher is managing the effects of substantial R&D investments, pricing pressures from cost-conscious clients, and fluctuating research funding, contributing to its overall risks.

Recent Earnings Report and Analyst Ratings

TMO shares rose by more than 6% on January 30 after the company reported its Q4 results. The adjusted EPS was $6.10, surpassing Wall Street’s expectations of $5.93. Revenue for the quarter reached $11.4 billion, exceeding forecasts of $11.3 billion.

Analysts currently maintain a bullish consensus on TMO’s stock, offering a “Strong Buy” rating overall. Of the 24 analysts covering the company, 17 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and four provide a “Hold” rating. The average analyst price target stands at $656.25, indicating a notable potential upside of 56.5% from current levels.

On the date of publication, Neha Panjwani did not have positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

More news from Barchart

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.