We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Thermo Fisher (TMO) is Placed Ahead of Q2 Earnings
Read MoreHide Full Article
Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release second-quarter 2024 results on Jul 24, before market open.
Thermo Fisher’s first-quarter earnings of $5.11 per share beat the Zacks Consensus Estimate by 8.7%. Its earnings missed estimates in one of the trailing four quarters and beat in the other three, the average surprise being 1.52%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter revenues is pegged at $10.51 billion, suggesting a 1.6% decline from the prior-year quarter’s reported figure. The consensus mark for earnings is pegged at $5.13 per share, indicating a marginal 0.4% decline from the year-ago quarter’s reported numbers.
During the first quarter earnings call, Thermo Fisher noted that it expects its second-quarter results to be slightly better than the first quarter, both in terms of reported and organic revenues. However, the company anticipates second-quarter adjusted EPS to be similar to the first quarter.
Estimate Revision Trend Ahead of Earnings
Estimates for Thermo Fisher’s second-quarter earnings remained unchanged at $5.13 per share in the past 60 days.
Now, let's look at how things might have progressed for the MedTech major prior to the announcement.
Factors at Play
Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales on the back of its electron microscopy business’ growth.
During the first quarter, the company launched the Thermo Scientific Dionex Inuvion Ion Chromatography system. Additionally, in the second quarter, the company unveiled the Thermo Scientific Stellar mass spectrometer (MS), a new solution that combines fast throughput and high sensitivity, allowing researchers to advance their translational omics work. We believe these developments to have a full-quarter contribution to the company’s second-quarter revenues.
Further, earlier in 2024, under the chemical analysis subsegment, the company launched a Thermo Scientific LInspector Edge In-line metrology solution to enhance battery safety, performance and production. This might have also contributed to TMO’s second-quarter Analytical Instruments sales.
Per our model, Thermo Fisher’s Analytical Instruments business projected second-quarter revenues of $1.8 billion, suggesting 2.9% growth year over year.
Within the Life-Science Solutions segment, the company is expected to have experienced a decline due to the runoff of pandemic-related revenues and lower levels of activity in the bioproduction business compared to the year-ago quarter. However, the magnitude of this decline is on a downward trend (in May 2023, WHO declared an end to COVID-19 as a public health emergency).
Meanwhile, the company is expected to have gained from its series of product launches. During the first quarter of 2024, the company introduced Axiom PangenomiX Array, a high-throughput microarray for use in human genomic studies across global populations, including disease risk and detection research, as well as population scale disease research programs. This development is expected to have contributed to the company’s top line in the to-be-reported quarter.
Per our model, the Life-Science Solutions business is expected to have generated $2.3 billion in revenues for the second quarter, calling for an 8.4% decline year over year.
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have gained positive contributions, led by the transplant diagnostics and immunodiagnostics businesses as well as the healthcare market channel.
Inthis segment, too, Thermo Fisher is experiencing a persistent decline in COVID testing-related demand and is expected to continue at much lower levels in 2024 as customer testing and therapy and vaccine demand decline. This is likely to have impeded TMO’s revenues in the second quarter. However, as we already discussed, the magnitude of this decline might have reduced in the to-be-reported quarter.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Our model projects TMO’s Specialty Diagnostics business to report $1.1 billion in revenues, suggesting a 4.5% decline year over year.
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.
Meanwhile, in the second quarter, Thermo Fisher Scientific introduced its newest line of high-performance, ultra-low temperature (ULT) freezers. The company expanded its laboratory services in Wisconsin and Kentucky in the second quarter of 2024. We expect these developments to have positively contributed to the company’s top-line growth.
Our model expects TMO’s Laboratory Products and Services business’ second-quarter revenues to be $5.8 billion, flat year over year.
What Our Quantitative Model Predicts
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Thermo Fisher has an Earnings ESP of 0.00%. 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 #2.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 266.7% from the year-ago quarter’s reported figure.
HCA Healthcare(HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2024 results on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 5.64%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 15.9% from the year-ago quarter’s reported figure.
Tandem Diabetes Care (TNDM - Free Report) has an Earnings ESP of +23.54% and a Zacks Rank of 3 at present. The company is scheduled to release its second-quarter 2024 results on Aug 1.
Tandem Diabetes has an expected revenue growth of 15.8% for 2024. Tandem Diabetes has a trailing four-quarter average earnings surprise of 9.92%.
Image: Shutterstock
Here's How Thermo Fisher (TMO) is Placed Ahead of Q2 Earnings
Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release second-quarter 2024 results on Jul 24, before market open.
Thermo Fisher’s first-quarter earnings of $5.11 per share beat the Zacks Consensus Estimate by 8.7%. Its earnings missed estimates in one of the trailing four quarters and beat in the other three, the average surprise being 1.52%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter revenues is pegged at $10.51 billion, suggesting a 1.6% decline from the prior-year quarter’s reported figure. The consensus mark for earnings is pegged at $5.13 per share, indicating a marginal 0.4% decline from the year-ago quarter’s reported numbers.
During the first quarter earnings call, Thermo Fisher noted that it expects its second-quarter results to be slightly better than the first quarter, both in terms of reported and organic revenues. However, the company anticipates second-quarter adjusted EPS to be similar to the first quarter.
Estimate Revision Trend Ahead of Earnings
Estimates for Thermo Fisher’s second-quarter earnings remained unchanged at $5.13 per share in the past 60 days.
Now, let's look at how things might have progressed for the MedTech major prior to the announcement.
Factors at Play
Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales on the back of its electron microscopy business’ growth.
During the first quarter, the company launched the Thermo Scientific Dionex Inuvion Ion Chromatography system. Additionally, in the second quarter, the company unveiled the Thermo Scientific Stellar mass spectrometer (MS), a new solution that combines fast throughput and high sensitivity, allowing researchers to advance their translational omics work. We believe these developments to have a full-quarter contribution to the company’s second-quarter revenues.
Further, earlier in 2024, under the chemical analysis subsegment, the company launched a Thermo Scientific LInspector Edge In-line metrology solution to enhance battery safety, performance and production. This might have also contributed to TMO’s second-quarter Analytical Instruments sales.
Per our model, Thermo Fisher’s Analytical Instruments business projected second-quarter revenues of $1.8 billion, suggesting 2.9% growth year over year.
Within the Life-Science Solutions segment, the company is expected to have experienced a decline due to the runoff of pandemic-related revenues and lower levels of activity in the bioproduction business compared to the year-ago quarter. However, the magnitude of this decline is on a downward trend (in May 2023, WHO declared an end to COVID-19 as a public health emergency).
Meanwhile, the company is expected to have gained from its series of product launches. During the first quarter of 2024, the company introduced Axiom PangenomiX Array, a high-throughput microarray for use in human genomic studies across global populations, including disease risk and detection research, as well as population scale disease research programs. This development is expected to have contributed to the company’s top line in the to-be-reported quarter.
Per our model, the Life-Science Solutions business is expected to have generated $2.3 billion in revenues for the second quarter, calling for an 8.4% decline year over year.
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have gained positive contributions, led by the transplant diagnostics and immunodiagnostics businesses as well as the healthcare market channel.
Inthis segment, too, Thermo Fisher is experiencing a persistent decline in COVID testing-related demand and is expected to continue at much lower levels in 2024 as customer testing and therapy and vaccine demand decline. This is likely to have impeded TMO’s revenues in the second quarter. However, as we already discussed, the magnitude of this decline might have reduced in the to-be-reported quarter.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
Our model projects TMO’s Specialty Diagnostics business to report $1.1 billion in revenues, suggesting a 4.5% decline year over year.
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.
Meanwhile, in the second quarter, Thermo Fisher Scientific introduced its newest line of high-performance, ultra-low temperature (ULT) freezers. The company expanded its laboratory services in Wisconsin and Kentucky in the second quarter of 2024. We expect these developments to have positively contributed to the company’s top-line growth.
Our model expects TMO’s Laboratory Products and Services business’ second-quarter revenues to be $5.8 billion, flat year over year.
What Our Quantitative Model Predicts
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Thermo Fisher has an Earnings ESP of 0.00%. 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 #2.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
Hims & Hers Health(HIMS - Free Report) has an Earnings ESP of +19.28% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2024 results on Aug 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 266.7% from the year-ago quarter’s reported figure.
HCA Healthcare(HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2024 results on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 5.64%. The Zacks Consensus Estimate for the company’s second-quarter EPS implies a surge of 15.9% from the year-ago quarter’s reported figure.
Tandem Diabetes Care (TNDM - Free Report) has an Earnings ESP of +23.54% and a Zacks Rank of 3 at present. The company is scheduled to release its second-quarter 2024 results on Aug 1.
Tandem Diabetes has an expected revenue growth of 15.8% for 2024. Tandem Diabetes has a trailing four-quarter average earnings surprise of 9.92%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.