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Thermo Fisher (TMO) to Report Q1 Earnings: WIll It Beat?
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Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release first-quarter 2021 results on Apr 29, before market open.
In the last reported quarter, the company’s earnings of $7.09 per share exceeded the Zacks Consensus Estimate by 3.35%. Its earnings surpassed estimates in the trailing four quarters, the average surprise being 20.81%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Since the last reported quarter, Thermo Fisher’s Analytical Instruments segment has started to registered strong rebound despite the negative impact of COVID-19 in the form of global supply chain disruption. While the end markets for chemical analysis are still muted, strong growth has been seen in Chromatography and Mass Spectrometry as well as the Materials and Structural Analysis businesses. Notably, recently, in mass spectrometry, Thermo Fisher extended its Orbitrap franchise with two new-generation Exploris mass spectrometers. Given the fact that customer activity is fast picking up, we expect businesses to have performed sequentially better in Q1.
The company’s majority of the COVID-19 response revenues has been recognized in Life-Science Solutions segment. Through the months of Q1, the segment is expected to have registered strong revenue contributions from testing kits, instruments, sample preparation and reagents for lab developed tests sales (recognized in the Genetic Sciences and Biosciences businesses). With extensive vaccine rollouts through the first quarter, this segment is likely to have also registered top-line contributions from vaccine and therapy production supplies (recognized in the BioProduction and Biosciences businesses).
Thermo Fisher Scientific Inc. Price and EPS Surprise
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits)too is expected to have registered positive contributions in the form of COVID-19-response revenue.Looking at consistently growing resurgence of virus-led healthcare needs, we expect strong growth contributions in Q1 coming from Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses.
However, fewer hospital visits on growing new cases might have once again impacted the level of routine diagnostics testing activity in Q1, particularly for Immunodiagnostics and Transplant Diagnostics businesses. We note that in the fourth quarter, routine diagnostic test sales although revived sequentially remained below pre-pandemic levels.
Within the Laboratory Products and Services segment, the company is expected to have gained from strong productivity and volume leverage within the pharma services business and the research and safety market channel. Also, the PPE business in the research and safety market channel as well as plastics used in testing workflows and cold storage equipment manufactured by the lab products business are expected to have generated strong sales growth in the first quarter.
Q1 Estimates
The Zacks Consensus Estimate for total revenues of $9.72 billion for the first quarter suggests growth of 55.97% from the prior-year quarter’s reported figure. The consensus mark for earnings of $6.69 per share indicates 127.6% rise from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Thermo Fisher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Earnings ESP: Thermo Fisher has an Earnings ESP of +0.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are three medical stocks worth considering from the same space with the right mix of elements to surpass expectations this earnings season.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank of 2, at present.
Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and is a Zacks #1 Ranked stock.
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Thermo Fisher (TMO) to Report Q1 Earnings: WIll It Beat?
Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release first-quarter 2021 results on Apr 29, before market open.
In the last reported quarter, the company’s earnings of $7.09 per share exceeded the Zacks Consensus Estimate by 3.35%. Its earnings surpassed estimates in the trailing four quarters, the average surprise being 20.81%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Since the last reported quarter, Thermo Fisher’s Analytical Instruments segment has started to registered strong rebound despite the negative impact of COVID-19 in the form of global supply chain disruption. While the end markets for chemical analysis are still muted, strong growth has been seen in Chromatography and Mass Spectrometry as well as the Materials and Structural Analysis businesses. Notably, recently, in mass spectrometry, Thermo Fisher extended its Orbitrap franchise with two new-generation Exploris mass spectrometers. Given the fact that customer activity is fast picking up, we expect businesses to have performed sequentially better in Q1.
The company’s majority of the COVID-19 response revenues has been recognized in Life-Science Solutions segment. Through the months of Q1, the segment is expected to have registered strong revenue contributions from testing kits, instruments, sample preparation and reagents for lab developed tests sales (recognized in the Genetic Sciences and Biosciences businesses). With extensive vaccine rollouts through the first quarter, this segment is likely to have also registered top-line contributions from vaccine and therapy production supplies (recognized in the BioProduction and Biosciences businesses).
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits)too is expected to have registered positive contributions in the form of COVID-19-response revenue.Looking at consistently growing resurgence of virus-led healthcare needs, we expect strong growth contributions in Q1 coming from Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses.
However, fewer hospital visits on growing new cases might have once again impacted the level of routine diagnostics testing activity in Q1, particularly for Immunodiagnostics and Transplant Diagnostics businesses. We note that in the fourth quarter, routine diagnostic test sales although revived sequentially remained below pre-pandemic levels.
Within the Laboratory Products and Services segment, the company is expected to have gained from strong productivity and volume leverage within the pharma services business and the research and safety market channel. Also, the PPE business in the research and safety market channel as well as plastics used in testing workflows and cold storage equipment manufactured by the lab products business are expected to have generated strong sales growth in the first quarter.
Q1 Estimates
The Zacks Consensus Estimate for total revenues of $9.72 billion for the first quarter suggests growth of 55.97% from the prior-year quarter’s reported figure. The consensus mark for earnings of $6.69 per share indicates 127.6% rise from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Thermo Fisher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Earnings ESP: Thermo Fisher has an Earnings ESP of +0.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are three medical stocks worth considering from the same space with the right mix of elements to surpass expectations this earnings season.
Elanco Animal Health Incorporated (ELAN - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank of 2, at present.
Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and is a Zacks #1 Ranked stock.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>