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Thermo Fisher (TMO) to Post Q1 Earnings: What's in Store?
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Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release first-quarter 2022 results on Apr 28, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $6.54 per share exceeded the Zacks Consensus Estimate by 25.3%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.51%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Through the months of the first quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales banking on flourishing electron microscopy and chromatography and mass spectrometry businesses. The company is expected to report growth driven by a favorable business mix and strong volume pull through and productivity enabled by the PPI business system.
In the last-reported fourth quarter, Thermo Fisher saw strong growth in transplant diagnostics and immunodiagnostics businesses, which was offset by lower COVID-19 testing revenues. We expect these wings to have registered strong growth once again in the first quarter, banking on favorable industry dynamics and a full-fledged economic recovery to the pre-pandemic level.
Further, the end markets for chemical analysis have been gradually returning to growth. In materials and structural analysis, Thermo Fisher launched the Thermo Scientific Spectra Ultra, a new-generation scanning transmission electron microscope for material science applications. Given the fact that customer demand is high, we expect the businesses to have performed sequentially better in Q1.
However the negative impact of COVID-19 in the form of supply issues and staffing shortages are expected to have deterred growth in a few areas within this business.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Within the Life-Science Solutions segment, with the emergence of the new virus variants, through the first half of the first-quarter months globally, this segment is likely to have also registered top-line contributions, thanks to demand for COVID-19 testing. However, the second half of the to-be-reported quarter witnessed muted demand for COVID testing on a significant drop in case count. This is expected to have slowed the COVID-response revenue growth within this segment in Q1.
However, bioproduction and biosciences businesses are expected to report strong sales numbers in Q1 on growing market demand.The company is expected to have registered robust growth in genetic sciences, biosciences and bioproduction businesses on the ramp-up of economic activity globally and the company’s pandemic response. The new capacity expansions like a new DNA manufacturing facility in Carlsbad, CA, along with strategic partnerships with AstraZeneca and product launches like Gibco Human Plasma-like Medium (HPLM) are expected to have contributed to the Q1 top line.
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have registered positive contributions in the form of continued growth in the immunodiagnostics and transplant diagnostics businesses. Looking at the consistently growing resurgence of the virus-led healthcare needs, the Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses are expected to have witnessed strong growth in Q1. More specifically, the company’s immunodiagnostics, clinical diagnostics, and transplant diagnostics businesses along with growing COVID-19 testing revenues are expected to have contributed strongly.
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 $10.63 billion for the first quarter suggests a 7.3% rise from the prior-year quarter’s reported figure. The consensus mark for earnings of $6.17 per share indicates a 14.4% decline from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:
Earnings ESP: Thermo Fisher has an Earnings ESP of -1.20%. 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.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Eli Lilly’s long-term earnings growth rate is estimated at 14.2%. LLY’s earnings yield is 2.94% compared with the industry’s 7.3%.
Lucira Health, Inc. has an Earnings ESP of +485.72% and a Zacks Rank of 2. The company is slated to report first-quarter 2022 results on May 12.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s earnings yield of 26.71% compares favorably with the industry’s 0.41%.
Meridian Bioscience, Inc. has an Earnings ESP of +26.32% and a Zacks Rank of 2. The company is scheduled to release second-quarter fiscal 2022 results on May 6.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s earnings yield of 5.0% compares favorably with the industry’s 0.4%.
Image: Bigstock
Thermo Fisher (TMO) to Post Q1 Earnings: What's in Store?
Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release first-quarter 2022 results on Apr 28, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $6.54 per share exceeded the Zacks Consensus Estimate by 25.3%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.51%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Through the months of the first quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales banking on flourishing electron microscopy and chromatography and mass spectrometry businesses. The company is expected to report growth driven by a favorable business mix and strong volume pull through and productivity enabled by the PPI business system.
In the last-reported fourth quarter, Thermo Fisher saw strong growth in transplant diagnostics and immunodiagnostics businesses, which was offset by lower COVID-19 testing revenues. We expect these wings to have registered strong growth once again in the first quarter, banking on favorable industry dynamics and a full-fledged economic recovery to the pre-pandemic level.
Further, the end markets for chemical analysis have been gradually returning to growth. In materials and structural analysis, Thermo Fisher launched the Thermo Scientific Spectra Ultra, a new-generation scanning transmission electron microscope for material science applications. Given the fact that customer demand is high, we expect the businesses to have performed sequentially better in Q1.
However the negative impact of COVID-19 in the form of supply issues and staffing shortages are expected to have deterred growth in a few areas within this business.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
Within the Life-Science Solutions segment, with the emergence of the new virus variants, through the first half of the first-quarter months globally, this segment is likely to have also registered top-line contributions, thanks to demand for COVID-19 testing. However, the second half of the to-be-reported quarter witnessed muted demand for COVID testing on a significant drop in case count. This is expected to have slowed the COVID-response revenue growth within this segment in Q1.
However, bioproduction and biosciences businesses are expected to report strong sales numbers in Q1 on growing market demand.The company is expected to have registered robust growth in genetic sciences, biosciences and bioproduction businesses on the ramp-up of economic activity globally and the company’s pandemic response. The new capacity expansions like a new DNA manufacturing facility in Carlsbad, CA, along with strategic partnerships with AstraZeneca and product launches like Gibco Human Plasma-like Medium (HPLM) are expected to have contributed to the Q1 top line.
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have registered positive contributions in the form of continued growth in the immunodiagnostics and transplant diagnostics businesses. Looking at the consistently growing resurgence of the virus-led healthcare needs, the Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses are expected to have witnessed strong growth in Q1. More specifically, the company’s immunodiagnostics, clinical diagnostics, and transplant diagnostics businesses along with growing COVID-19 testing revenues are expected to have contributed strongly.
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 $10.63 billion for the first quarter suggests a 7.3% rise from the prior-year quarter’s reported figure. The consensus mark for earnings of $6.17 per share indicates a 14.4% decline from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:
Earnings ESP: Thermo Fisher has an Earnings ESP of -1.20%. 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.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Eli Lilly and Company (LLY - Free Report) has an Earnings ESP of +7.38% and a Zacks Rank of #2. Eli Lillywill release first-quarter 2022 results on Apr 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eli Lilly’s long-term earnings growth rate is estimated at 14.2%. LLY’s earnings yield is 2.94% compared with the industry’s 7.3%.
Lucira Health, Inc. has an Earnings ESP of +485.72% and a Zacks Rank of 2. The company is slated to report first-quarter 2022 results on May 12.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s earnings yield of 26.71% compares favorably with the industry’s 0.41%.
Meridian Bioscience, Inc. has an Earnings ESP of +26.32% and a Zacks Rank of 2. The company is scheduled to release second-quarter fiscal 2022 results on May 6.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s earnings yield of 5.0% compares favorably with the industry’s 0.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.