Thermo Fisher Scientific
The 10-second takeaway
For the quarter ended June 30 (Q2), Thermo Fisher Scientific beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins improved, and net margins dropped.
Thermo Fisher Scientific notched revenue of $3.11 billion. The 17 analysts polled by S&P Capital IQ wanted to see sales of $3.05 billion on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $2.90 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.22. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.16 per share. GAAP EPS of $0.63 for Q2 were 53% lower than the prior-year quarter's $1.35 per share. (The prior-year quarter included $0.79 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.2%, 340 basis points better than the prior-year quarter. Operating margin was 12.6%, 20 basis points better than the prior-year quarter. Net margin was 7.5%, 1,060 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $1.18.
Next year's average estimate for revenue is $12.33 billion. The average EPS estimate is $4.79.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 550 members out of 571 rating the stock outperform, and 21 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Thermo Fisher Scientific a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Thermo Fisher Scientific is outperform, with an average price target of $63.00.
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