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Thermo Fisher Scientific Inc. (NYSE: TMO), the global leader in serving science, has released its financial results for the second quarter of 2024, ending June 29. The company reported a revenue of $10.54 billion, reflecting a slight decline of 1% compared to the $10.69 billion recorded in the same quarter last year.
Despite the revenue dip, Thermo Fisher saw a significant improvement in its GAAP diluted earnings per share (EPS), which rose by 15% to $4.04. Adjusted EPS also saw an increase, albeit a smaller one, growing by 4% to $5.37. The company attributes its strong performance to the successful execution of its growth strategy, which included launching several innovative products and expanding its global footprint.
In addition to financial achievements, Thermo Fisher made strategic advancements in the quarter. The company introduced a range of new analytical instruments at the American Society for Mass Spectrometry conference. These innovations include the Thermo Scientific Stellar mass spectrometer and three new editions of the Thermo Scientific Orbitrap Ascend Tribrid mass spectrometer, tailored for MultiOmics, Structural Biology, and BioPharma applications. The company also expanded its clinical trial supply services with a new ultra-cold facility in the Netherlands and a state-of-the-art innovation lab in Pennsylvania. The acquisition of Olink, a provider of next-generation proteomic solutions, further bolstered Thermo Fisher’s capabilities in protein research.
Thermo Fisher Beats EPS and Revenue Expectations in Q2 2024
Analysts had anticipated an EPS of $5.12 and revenue of $10.5 billion. The company exceeded revenue expectations by reporting $10.54 billion, and the adjusted EPS of $5.37 surpassed the forecasted $5.12, demonstrating strong earnings performance. However, the GAAP diluted EPS of $4.04, despite its 15% year-over-year increase, fell short of the adjusted EPS expectations due to the impact of one-time charges and adjustments.
The company’s operating income also saw improvements. GAAP operating income for the second quarter grew to $1.82 billion, up from $1.58 billion in the same period last year. The operating margin increased to 17.3% from 14.8%. Adjusted operating income, however, showed a slight decline, coming in at $2.35 billion compared to $2.37 billion last year. Despite this, the adjusted operating margin saw a marginal increase from 22.2% to 22.3%.
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TMO Ups Guidance, Expects EPS in a Range of $21.29 to $22.07
The company now expects its revenue to range between $42.4 billion and $43.3 billion, up from the previous guidance of $42.3 billion to $43.3 billion. The adjusted EPS guidance has also been revised upwards to a range of $21.29 to $22.07, compared to the earlier forecast of $21.14 to $22.02. This optimistic outlook reflects confidence in the company’s growth strategy and market position, bolstered by recent acquisitions and product launches.
CEO Marc N. Casper expressed optimism about the company’s future, citing the successful execution of their growth strategy and the positive impact of the PPI Business System. He highlighted the acquisition of Olink and the launch of new products as key drivers for future growth. Casper emphasized that Thermo Fisher is well-positioned for continued success, having made substantial progress in the first half of the year.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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