We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Thermo Fisher Grows Globally; Affimetrix Synergy on Track
Read MoreHide Full Article
On Jun 20, 2016, we issued an updated research report on Thermo Fisher Scientific Inc. (TMO - Free Report) – scientific instrument maker and a world leader in serving science.
We currently await the integration and expected synergy from Affimetrix, the recently completed mega acquisition by Thermo Fisher. This buyout is expected to boost the company’s offering in the fast-growing flow cytometry market through an advanced antibody portfolio.
In genetic analysis, Affymetrix’s technologies should perfectly complement Thermo Fisher’s products in the targeted clinical and applied markets. The company expects this acquisition to generate attractive financial returns, including an accretion of 10 cents to its adjusted EPS in the first full year of the deal. Total synergy value is pegged at $70 million by the third year post completion of the deal, which comprises cost synergy of $55 million and adjusted operating income benefit of $15 million.
Additionally, the Life Technologies integration is progressing well and Thermo Fisher is on track to deliver revenue and cost synergy targets from the same. By year-end 2015, the company realized $130 million of incremental cost synergies, in line with its full-year target. Revenue synergies at the end of 2015 were $90 million, much faster than anticipated. This puts Thermo Fisher in a comfortable position to achieve its full-year 2016 targeted synergy to deliver $150 million in revenue.
Thermo Fisher has carried out multiple acquisitions in the past that have added complementary technologies, expanded its presence in high-growth markets, and generated cost and revenue synergies, thereby creating shareholder value. Apart from boosting revenue accretion, these deals have historically benefited the company’s operating margin while also resulting in tax synergies.
Thermo Fisher boasts strong international operations and has witnessed consistent growth in the Asia-Pacific and emerging markets. The company plans to continue strengthening its foothold in emerging markets, such as China and India, and translate this success to other high-priority opportunities in regions such as South Korea, Russia and Brazil. In the last reported quarter of 2016, standout contributors were China and India.
However, economic uncertainties and currency headwinds continue to act as major dampeners. Thermo Fisher currently estimates unfavorable foreign exchange to have a negative impact on its top- and bottom-line performance even in 2016, although to a lesser degree compared to 2015.
The stock currently carries a Zacks Rank #3 (Hold).
Key Picks in the Sector
Some top-ranked medical instrument stocks worth a look are CryoLife Inc. , Masimo Corporation (MASI - Free Report) and Mesa Laboratories Inc. (MLAB - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Thermo Fisher Grows Globally; Affimetrix Synergy on Track
On Jun 20, 2016, we issued an updated research report on Thermo Fisher Scientific Inc. (TMO - Free Report) – scientific instrument maker and a world leader in serving science.
We currently await the integration and expected synergy from Affimetrix, the recently completed mega acquisition by Thermo Fisher. This buyout is expected to boost the company’s offering in the fast-growing flow cytometry market through an advanced antibody portfolio.
In genetic analysis, Affymetrix’s technologies should perfectly complement Thermo Fisher’s products in the targeted clinical and applied markets. The company expects this acquisition to generate attractive financial returns, including an accretion of 10 cents to its adjusted EPS in the first full year of the deal. Total synergy value is pegged at $70 million by the third year post completion of the deal, which comprises cost synergy of $55 million and adjusted operating income benefit of $15 million.
Additionally, the Life Technologies integration is progressing well and Thermo Fisher is on track to deliver revenue and cost synergy targets from the same. By year-end 2015, the company realized $130 million of incremental cost synergies, in line with its full-year target. Revenue synergies at the end of 2015 were $90 million, much faster than anticipated. This puts Thermo Fisher in a comfortable position to achieve its full-year 2016 targeted synergy to deliver $150 million in revenue.
Thermo Fisher has carried out multiple acquisitions in the past that have added complementary technologies, expanded its presence in high-growth markets, and generated cost and revenue synergies, thereby creating shareholder value. Apart from boosting revenue accretion, these deals have historically benefited the company’s operating margin while also resulting in tax synergies.
Thermo Fisher boasts strong international operations and has witnessed consistent growth in the Asia-Pacific and emerging markets. The company plans to continue strengthening its foothold in emerging markets, such as China and India, and translate this success to other high-priority opportunities in regions such as South Korea, Russia and Brazil. In the last reported quarter of 2016, standout contributors were China and India.
However, economic uncertainties and currency headwinds continue to act as major dampeners. Thermo Fisher currently estimates unfavorable foreign exchange to have a negative impact on its top- and bottom-line performance even in 2016, although to a lesser degree compared to 2015.
The stock currently carries a Zacks Rank #3 (Hold).
Key Picks in the Sector
Some top-ranked medical instrument stocks worth a look are CryoLife Inc. , Masimo Corporation (MASI - Free Report) and Mesa Laboratories Inc. (MLAB - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>