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What's in Store for Thermo Fisher (TMO) in Q3 Earnings?
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Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release third-quarter 2022 results on Oct 26, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $5.51 per share exceeded the Zacks Consensus Estimate by 11.9%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.5%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Through the months of the third 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 have recorded 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 the company’s flagship facility for cell culture media in Grand Island, NY, Thermo Fisher recently completed a capacity expansion to support customers' research, drug development, and production applications. Further, in its lab chemicals business in Geel, Belgium, the company completed a major expansion of the facility to support strong growth. These developments are expected to have contributed to the company’s revenues in Q3.
However, supply issues and staffing shortages are expected to have deterred growth in a few areas within this business.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Per our model, this segment is expected to report revenues of $1.49 billion in Q3, up 15.2% year over year.
Within the Life-Science Solutions segment, the company is expected to have registered strong growth in its bioproduction business, banking on progress with cell culture media, single-use technologies, and a rapidly growing purification resins business as well as the pharma services business. However, this might have been offset by lower revenues in the genetic sciences business due to a moderation in COVID testing revenues compared to the year-ago period.
Our model predicts Q3 segment revenues to be 3.24 billion, up 33% year over year.
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 Q3. 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.
Our model estimates Q3 segment revenues of $1.18 billion, up 12% year over year.
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 third quarter.
We expect this segment to report revenues of $4.64 billion for Q3, up 33.2% year over year.
Q3 Estimates
The Zacks Consensus Estimate for total revenues of $9.86 billion for the third quarter suggests a 5.7% rise from the prior-year quarter’s reported figure. The consensus mark for earnings of $4.76 per share indicates a 17.4% 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.
Charles River Laboratories International (CRL - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Image: Bigstock
What's in Store for Thermo Fisher (TMO) in Q3 Earnings?
Thermo Fisher Scientific Inc. (TMO - Free Report) is slated to release third-quarter 2022 results on Oct 26, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $5.51 per share exceeded the Zacks Consensus Estimate by 11.9%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.5%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Through the months of the third 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 have recorded 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 the company’s flagship facility for cell culture media in Grand Island, NY, Thermo Fisher recently completed a capacity expansion to support customers' research, drug development, and production applications. Further, in its lab chemicals business in Geel, Belgium, the company completed a major expansion of the facility to support strong growth. These developments are expected to have contributed to the company’s revenues in Q3.
However, supply issues and staffing shortages are expected to have deterred growth in a few areas within this business.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
Per our model, this segment is expected to report revenues of $1.49 billion in Q3, up 15.2% year over year.
Within the Life-Science Solutions segment, the company is expected to have registered strong growth in its bioproduction business, banking on progress with cell culture media, single-use technologies, and a rapidly growing purification resins business as well as the pharma services business. However, this might have been offset by lower revenues in the genetic sciences business due to a moderation in COVID testing revenues compared to the year-ago period.
Our model predicts Q3 segment revenues to be 3.24 billion, up 33% year over year.
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 Q3. 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.
Our model estimates Q3 segment revenues of $1.18 billion, up 12% year over year.
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 third quarter.
We expect this segment to report revenues of $4.64 billion for Q3, up 33.2% year over year.
Q3 Estimates
The Zacks Consensus Estimate for total revenues of $9.86 billion for the third quarter suggests a 5.7% rise from the prior-year quarter’s reported figure. The consensus mark for earnings of $4.76 per share indicates a 17.4% 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.
Charles River Laboratories International (CRL - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.