Thermo Fisher Scientific Prepares to Report Earnings Amid Mixed Performance
With a market cap of $205.5 billion, Thermo Fisher Scientific Inc. (TMO) is a global leader in serving science, providing a broad range of products and services across life sciences, analytical instruments, specialty diagnostics, and laboratory products. Based in Waltham, Massachusetts, it operates internationally, offering solutions for pharmaceutical, biotechnology, healthcare, and research markets. TMO is set to unveil its fiscal Q4 earnings results before the market opens on Thursday, Jan. 30.
Analysts Project Increased Earnings
Ahead of this event, analysts expect the scientific instrument and laboratory supplies maker to report a profit of $5.92 per share, an increase of 4.4% from $5.67 per share in the same quarter last year. The company has outperformed Wall Street’s bottom-line estimates for the past four quarters. In the most recent quarter, TMO exceeded the consensus EPS estimate by a narrow margin.
Forecasts for Future Growth
For fiscal 2024, analysts expect TMO to report EPS of $21.68, which marks a slight rise from $21.55 in fiscal 2023. Looking ahead to fiscal 2025, EPS is projected to grow by 7.3% year-over-year, reaching $23.26.
Performance Compared to Market Trends
TMO has lagged behind the broader markets over the past 52 weeks, with shares rising only 3.1%, while the S&P 500 Index ($SPX) has seen a 26.6% gain. In contrast, the stock has outperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal 1% return over the same timeframe.
Recent Market Reactions and Analyst Sentiment
Shares of Thermo Fisher Scientific fell 1.7% on Oct. 23, primarily due to a mixed Q3 earnings report. Even though adjusted EPS of $5.28 surpassed the consensus estimate, it represented a 7.2% decline year-over-year. Quarterly revenue of $10.6 billion fell short of expectations, with both organic and core organic revenues remaining flat compared to the previous year. Investor caution was evident due to margin contraction and rising operating expenses, despite the company raising its full-year adjusted EPS guidance to a range of $21.35 – $22.07.
Positive Outlook from Analysts
Nevertheless, analysts’ consensus rating on TMO stock remains optimistic, holding a “Strong Buy” designation overall. Out of 25 analysts covering the stock, 17 have rated it “Strong Buy,” three have “Moderate Buy,” and five maintain “Holds.” This reflects a slight increase in bullish sentiment compared to three months ago, when 16 analysts suggested a “Strong Buy.”
The average analyst price target for TMO is $649, indicating a potential upside of nearly 19% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
