Thermo Fisher Scientific Inc. Earnings: Fifth Straight Quarter of Expanding Margins, Net Income Climbs
Thermo Fisher Scientific Earnings Cheat Sheet for the Second Quarter
Results: Net income for Thermo Fisher Scientific Inc. rose to $523.4 million ($1.36 per share) vs. $237.3 million (57 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.
Revenue: Rose 9.5% to $2.9 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: TMO reported adjusted net income of 99 cents per share. By that measure, the company beat the mean estimate of 98 cents per share. It beat the average revenue estimate of $2.83 billion.
Quoting Management: “We delivered a solid second quarter, which keeps us right on track to meet our financial goals for the year,” said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific. “In addition to record top-line results, we achieved record adjusted EPS, with 22 percent growth over the year-ago quarter. We are executing our plan and reaping the benefits of our investments in new products and emerging markets, our PPI productivity initiatives and effective capital deployment.”
Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.8 percentage point to 41.7% from the year earlier quarter. Over that span, margins have grown on average 0.9 percentage point per quarter on a year-over-year basis.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 8.6% and in the fourth quarter of the last fiscal year, the figure rose 8.9%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 7 cents in the third quarter of the last fiscal year.
The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 1.7% to $2.72 billion from the year earlier quarter.
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).
(Source: Xignite Financials)