Thermo Fisher Scientific Inc. Earnings Cheat Sheet: The Streak is Broken

Although S&P 500 (NYSE:SPY) component Thermo Fisher Scientific Inc.’s (NYSE:TMO) net income fell in the third quarter from a year earlier, profit exceeded analysts’ expectations. Thermo Fisher Scientific develops, manufactures and sells products to assist the pharmaceutical, biotechnology, academic, government and other research and industrial markets.

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Thermo Fisher Scientific Earnings Cheat Sheet for the Third Quarter

Results: Net income for the medical instruments and supplies company fell to $265.4 million (69 cents per share) vs. $268.5 million (66 cents per share) a year earlier. This is a decline of 1.2% from the year earlier quarter.

Revenue: Rose 10.8% to $2.97 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TMO reported adjusted net income of $1.07 per share. By that measure, the company met the mean estimate. Analysts were expecting revenue of $3 billion.

Quoting Management: “I’m very pleased to report that we delivered excellent earnings growth in the third quarter – with a 23 percent increase in adjusted EPS – despite more challenging conditions that we began to see in academic and government markets late in the quarter,” said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific. “We also significantly expanded our adjusted operating margin by executing our productivity plans and successfully integrating recent acquisitions.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose more than twofold from the year earlier, while the figure increased 8.6% in the first quarter, 8.9% in the fourth quarter of the last fiscal year and 21.4% in the third quarter of the last fiscal year.

From the second quarter, the company’s current liabilities rose to $2.79 billion from $1.82 billion.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 4 cents in the first quarter, and by 5 cents in the fourth quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 9.4% to $2.9 billion while the figure rose 1.7% in the first quarter from the year earlier.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.23 per share from $1.18. The average estimate for the fiscal year is $4.20 per share, a rise from $4.13 ninety days ago.

Competitors to Watch: PerkinElmer, Inc. (NYSE:PKI), Becton, Dickinson and Co. (NYSE:BDX), Bruker Corporation (NASDAQ:BRKR), Beckman Coulter, Inc. (NYSE:BEC), Harvard Bioscience, Inc. (NASDAQ:HBIO), Bio-Rad Laboratories, Inc. (NYSE:BIO), CareFusion Corporation (NYSE:CFN), Waters Corporation (NYSE:WAT), Teleflex Incorporated (NYSE:TFX), and Quidel Corporation (NASDAQ:QDEL).

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(Source: Xignite Financials)