Thermo Fisher Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Thermo Fisher (NYSE:TMO) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Thermo Fisher Scientific develops, manufactures and sells products to assist the pharmaceutical, biotechnology, academic, government and other research and industrial markets.

Thermo Fisher Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.28 per share, a rise of 8.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.27. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting profit of $4.85 per share, a rise of 16.6% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of $1.19 a share versus the estimate of profit of $1.16 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit rose 9.4% to $290.4 million (79 cents a share) from $265.4 million (69 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.8% to $3.09 billion from $2.97 billion.

Here’s how Thermo Fisher traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

tmo

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.96 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 12.7% in the fourth quarter of the last fiscal year, 13.9% in the first quarter and 7.3% in the second quarter before increasing again in the third quarter.

Heading into this earnings announcement, net income has dropped 9.7% on average for the last four quarters.

Wall St. Revenue Expectations: On average, analysts predict $3.14 billion in revenue this quarter, a rise of 0.3% from the year-ago quarter. Analysts are forecasting total revenue of $12.4 billion for the year, a rise of 5.7% from last year’s revenue of $11.73 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)