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What's in Store for Thermo Fisher (TMO) in Q2 Earnings?
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Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release second-quarter 2022 results on Jul 28, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $7.25 per share exceeded the Zacks Consensus Estimate by 17.5%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.94%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Through the months of the second quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales, banking on electron microscopy, chromatography, mass spectrometry, chemical analysis as well as the research and safety market channel businesses. The company is expected to report growth driven by a favorable business mix and new launches including four new gas chromatography and GC-MS instruments to advance analytical testing for food, environmental, industrial, and pharmaceutical applications.
Further, in terms of performance in high-growth and emerging markets, in Beijing, the National Institute of Biological Sciences has started to use mass spectrometers to accelerate its research in structural biology. In Korea, electron microscopes are enabling researchers at Pusan National University to establish a bioimaging center to accelerate virus research. These two developments are expected to have contributed to the company’s revenues in Q2.
Thermo Fisher Scientific Inc. Price and EPS Surprise
However the negative impact of COVID-19 in the form of supply issues and staffing shortages are expected to have deterred growth in a few areas within this business.
Within the Life-Science Solutions segment, with the emergence of the new virus variants, through the months of the second quarter globally, this segment is likely to have also registered top-line contributions, thanks to rising demand for COVID-19 testing. This is expected to have accelerated COVID-response revenue growth within this segment compared with Q1.
Further, in bioproduction, the newly-launched Gibco CTS Xenon electroporation system for the efficient delivery of genetic material into cells as part of cell therapy manufacturing, should contribute to the Q2 top line.
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have registered positive contributions in the form of continued growth in the immunodiagnostics and transplant diagnostics businesses. Looking at the consistently growing resurgence of the virus-led healthcare needs, the Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses are expected to have witnessed strong growth in Q2. More specifically, the company’s strong underlying growth in the healthcare market channel, transplant diagnostics, and clinical diagnostics businesses are expected to have contributed to the to-be-reported quarter’s top line.
Within the Laboratory Products and Services segment, the company is expected to have gained from strong productivity and volume leverage within the pharma services business and the research and safety market channel. Also, the PPD business in the research and safety market channel as well as plastics used in testing workflows and cold storage equipment manufactured by the lab products business are expected to have generated strong sales growth in the second quarter.
Q2 Estimates
The Zacks Consensus Estimate for total revenues of $9.86 billion for the second quarter suggests a 6.3% rise from the prior-year quarter’s reported figure. The consensus mark for earnings of $4.91 per share indicates a 12.3% decline from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:
Earnings ESP: Thermo Fisher has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Image: Bigstock
What's in Store for Thermo Fisher (TMO) in Q2 Earnings?
Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release second-quarter 2022 results on Jul 28, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $7.25 per share exceeded the Zacks Consensus Estimate by 17.5%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.94%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Through the months of the second quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales, banking on electron microscopy, chromatography, mass spectrometry, chemical analysis as well as the research and safety market channel businesses. The company is expected to report growth driven by a favorable business mix and new launches including four new gas chromatography and GC-MS instruments to advance analytical testing for food, environmental, industrial, and pharmaceutical applications.
Further, in terms of performance in high-growth and emerging markets, in Beijing, the National Institute of Biological Sciences has started to use mass spectrometers to accelerate its research in structural biology. In Korea, electron microscopes are enabling researchers at Pusan National University to establish a bioimaging center to accelerate virus research. These two developments are expected to have contributed to the company’s revenues in Q2.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
However the negative impact of COVID-19 in the form of supply issues and staffing shortages are expected to have deterred growth in a few areas within this business.
Within the Life-Science Solutions segment, with the emergence of the new virus variants, through the months of the second quarter globally, this segment is likely to have also registered top-line contributions, thanks to rising demand for COVID-19 testing. This is expected to have accelerated COVID-response revenue growth within this segment compared with Q1.
Further, in bioproduction, the newly-launched Gibco CTS Xenon electroporation system for the efficient delivery of genetic material into cells as part of cell therapy manufacturing, should contribute to the Q2 top line.
The Specialty Diagnostics segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have registered positive contributions in the form of continued growth in the immunodiagnostics and transplant diagnostics businesses. Looking at the consistently growing resurgence of the virus-led healthcare needs, the Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses are expected to have witnessed strong growth in Q2. More specifically, the company’s strong underlying growth in the healthcare market channel, transplant diagnostics, and clinical diagnostics businesses are expected to have contributed to the to-be-reported quarter’s top line.
Within the Laboratory Products and Services segment, the company is expected to have gained from strong productivity and volume leverage within the pharma services business and the research and safety market channel. Also, the PPD business in the research and safety market channel as well as plastics used in testing workflows and cold storage equipment manufactured by the lab products business are expected to have generated strong sales growth in the second quarter.
Q2 Estimates
The Zacks Consensus Estimate for total revenues of $9.86 billion for the second quarter suggests a 6.3% rise from the prior-year quarter’s reported figure. The consensus mark for earnings of $4.91 per share indicates a 12.3% decline from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:
Earnings ESP: Thermo Fisher has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
BrainsWay Ltd. (BWAY - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
BrainsWay’s 2023 earnings growth rate is estimated to be 16.7%. BWAY’s 2023 revenues are expected to growth 17.1% from 2022.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank of #2.
Alcon long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.41% compares favorably with the industry’s (8.09%).
QuidelOrtho Corporation (QDEL - Free Report) currently has an Earnings ESP of +9.17% and a Zacks Rank of #2.
QDEL’s earnings yield of 14.83% compares favorably with the industry’s (-2.63%).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.