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Shares of

Thermo Fisher

rose Wednesday after the scientific instrument maker posted higher-than-expected quarterly earnings and revenue and raised its full-year guidance.

The stock rose 1.6% to $618.22 on Wednesday. It has increased almost 33% year to date.

Adjusted third-quarter earnings were $5.76 a share, beating analysts’ expectations of $4.68. Revenue in the quarter grew 9% to $9.33 billion from $8.52 billion in the year-earlier period. Analysts expected a revenue of $8.38 billion.

Thermo Fisher

(ticker:TMO) said organic revenue growth from its base business was 10%. While Covid-19 response revenue was down 2% from a year earlier it still came in at $2.05 billion.

“With the surge in the Delta variant, we saw strong testing demand around the world in Q3,” CEO Marc N. Casper said on the company’s earnings call.

“The majority of our Covid-19 response revenue was recognized in Life Sciences Solutions with the remainder recognized in Laboratory Products and Services and Specialty Diagnostics,” Chief Financial Officer Stephen Williamson added.

Thermo Fisher provides lab equipment like incubators, and its life sciences segment makes instruments to analyze DNA. The company’s specialty diagnostics segment helps clinicians improve patient care, according to the Thermo Fisher website.

Thermo Fisher raised its revenue guidance for 2021 by $1.2 billion to $37.1 billion, up 15% from a year earlier. The company raised its adjusted earnings guidance by $1.30 a share to $23.37. It estimated Covid-19 response revenue for the year would increase to $7.7 billion from $6.7 billion.

In addition, the company raised its 2022 revenue guidance by $200 million to $40.5 billion. Adjusted profit for 2022 was boosted to $21.36 a share.

Analysts at Benchmark maintained their Buy rating on the stock with a price target of $650. Analysts surveyed by FactSet rate the stock Overweight with an average target of $656.03.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com

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