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.
Thermo Fisher (TMO) Down 4.3% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Thermo Fisher Scientific (TMO - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Thermo Fisher due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Thermo Fisher Beats on Q2 Earnings on Growth In All Lines
Thermo Fisher Scientific Inc.'s second-quarter 2019 adjusted earnings per share (EPS) came in at $3.04, beating the Zacks Consensus Estimate by 1%. The figure also improved from the year-ago quarterly figure by 10.5%. On a reported basis, EPS was $2.77, compared with $1.85 in the year-ago quarter.
Revenues in the quarter under review grossed $6.32 billion, up 3.9% year over year. The top line remained in line the Zacks Consensus Estimate.
Quarter in Detail
Organic revenues in the reported quarter grew 5% year over year while acquisitions drove revenues by 1%. Currency translation affected total revenues by 2%.
Thermo Fisher operates under four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics and Laboratory Products and Services.
Revenues at the Life Sciences Solutions segment (27.1% of total revenues) improved 9% year over year to $1.71 billion while Analytical Instruments Segment sales (21%) edged up 1% to $1.32 billion.
Revenues at the Laboratory Products and Services segment (41.7%) rose 3% to $2.63 billion. The Specialty Diagnostics segment (14.9%) recorded a 1% rise to $949 million.
Gross margin of 46.7% during the second quarter contracted 50 basis points (bps) year over year despite a 2.8% improvement in gross profits. Adjusted operating margin contracted 14 bps to 22.8% on a 2.4% rise in adjusted operating expenses.
The company exited the second quarter of 2019 with cash and cash equivalents of $2.29 billion, compared with $1.10 billion in the first quarter. Year-to-date, net cash provided by operating activities was $1.94 billion compared with $1.52 billion a year ago.
2019 Guidance
Banking on a stronger operational performance, Thermo Fisher has raised its 2019 revenue and earnings guidance.
Revenue guidance has been raised to a new range of $25.30 to $25.50 billion (from the earlier-provided range of $25.17 to $25.47 billion) indicating projected revenue growth in the band of 4% to 5% from 2018. The Zacks Consensus Estimate of $25.41 billion remains within the guided range.
Adjusted EPS guidance for 2019 has been raised to a new range of $12.16 to $12.26 (from previous range of $12.08 to $12.22) indicating 9% to 10% growth from 2018. The Zacks Consensus Estimate of $12.20 remains within the guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Thermo Fisher has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Thermo Fisher has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Thermo Fisher (TMO) Down 4.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Thermo Fisher Scientific (TMO - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Thermo Fisher due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Thermo Fisher Beats on Q2 Earnings on Growth In All Lines
Thermo Fisher Scientific Inc.'s second-quarter 2019 adjusted earnings per share (EPS) came in at $3.04, beating the Zacks Consensus Estimate by 1%. The figure also improved from the year-ago quarterly figure by 10.5%. On a reported basis, EPS was $2.77, compared with $1.85 in the year-ago quarter.
Revenues in the quarter under review grossed $6.32 billion, up 3.9% year over year. The top line remained in line the Zacks Consensus Estimate.
Quarter in Detail
Organic revenues in the reported quarter grew 5% year over year while acquisitions drove revenues by 1%. Currency translation affected total revenues by 2%.
Thermo Fisher operates under four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics and Laboratory Products and Services.
Revenues at the Life Sciences Solutions segment (27.1% of total revenues) improved 9% year over year to $1.71 billion while Analytical Instruments Segment sales (21%) edged up 1% to $1.32 billion.
Revenues at the Laboratory Products and Services segment (41.7%) rose 3% to $2.63 billion. The Specialty Diagnostics segment (14.9%) recorded a 1% rise to $949 million.
Gross margin of 46.7% during the second quarter contracted 50 basis points (bps) year over year despite a 2.8% improvement in gross profits. Adjusted operating margin contracted 14 bps to 22.8% on a 2.4% rise in adjusted operating expenses.
The company exited the second quarter of 2019 with cash and cash equivalents of $2.29 billion, compared with $1.10 billion in the first quarter. Year-to-date, net cash provided by operating activities was $1.94 billion compared with $1.52 billion a year ago.
2019 Guidance
Banking on a stronger operational performance, Thermo Fisher has raised its 2019 revenue and earnings guidance.
Revenue guidance has been raised to a new range of $25.30 to $25.50 billion (from the earlier-provided range of $25.17 to $25.47 billion) indicating projected revenue growth in the band of 4% to 5% from 2018. The Zacks Consensus Estimate of $25.41 billion remains within the guided range.
Adjusted EPS guidance for 2019 has been raised to a new range of $12.16 to $12.26 (from previous range of $12.08 to $12.22) indicating 9% to 10% growth from 2018. The Zacks Consensus Estimate of $12.20 remains within the guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Thermo Fisher has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Thermo Fisher has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.