Thermo Fisher Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Thermo Fisher (NYSE:TMO) will unveil its latest earnings on Wednesday, July 25, 2012. 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 $1.16 per share, a rise of 17.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 14.9% versus last year to $4.78.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of $1.17 per share, and the previous quarter, it had net income of $1.18.

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A Look Back: In the first quarter, profit rose 10% to $277.3 million ($1.50 a share) from $252.2 million (64 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.9% to $3.1 billion from $2.72 billion.

Wall St. Revenue Expectations: On average, analysts predict $3.06 billion in revenue this quarter, a rise of 5.5% from the year-ago quarter. Analysts are forecasting total revenue of $12.35 billion for the year, a rise of 5.3% from last year’s revenue of $11.73 billion.

Stock Price Performance: Between May 22, 2012 and July 19, 2012, the stock price had risen $1.69 (3.3%), from $51.34 to $53.03. The stock price saw one of its best stretches over the last year between January 4, 2012 and January 11, 2012, when shares rose for six straight days, increasing 8.7% (+$4.02) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 5.5% (-$2.92) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.4% in the second quarter of the last fiscal year, 10.8% in the third quarter of the last fiscal year and 12.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the third quarter of the last fiscal year and fourth quarter of the last fiscal year, profit rose in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.68 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.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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

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