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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 2023 results on Jul 26, 2023, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $5.03 per share exceeded the Zacks Consensus Estimate by 1.6%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.99%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Similar to the last reported quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales, banking on chromatography and mass spectrometry and the electron microscopy businesses. Per our model, Thermo Fisher’s Analytical Instruments’ business projected revenues is pegged at $1.71 billion for the second quarter, suggesting a 6.5% growth year over year.
The company is expected to have reco rded growth, driven by a favorable business mix and new launches. In the first quarter, TMO launched Applied Biosystems QuantStudio Absolute Q AutoRun dPCR Suite, an automated digital PCR solution to increase productivity for molecular research, including cell and gene therapy and cancer research. The launch of Invitrogen DynaGreen — microplastic-free magnetic beads for protein purification — backed by strong customer adoption, is also expected to have contributed to the second-quarter top line.
Within the Life-Science Solutions segment, the company is expected to have registered a decline due to moderation in pandemic related revenue in the segment.
In May 2023, Thermo Fisher Scientific and BRIN collaborated to Strengthen Research Infrastructure and Capabilities in Indonesia. TMO opened a new sterile drug facility in Singapore that will enable customers to deliver new medicines and vaccines in the Asia-Pacific market. These developments are expected to have expanded the company’s global reach, thus adding significantly to the second-quarter top line.
However, unfavorable macroeconomic condition and fluctuations in foreign currency might have impeded growth in Q2.
Per our model, the Life-Science Solutions’ business is expected to generate $2.98 billion revenues for the second quarter, calling for a 9.3% decline 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 microbiology and transplant diagnostics businesses. Our model projects Specialty Diagnostics’ business to report $1.21 billion revenues for the quarter to be reported, suggesting a 10% growth year over year.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Furthermore, in May 2023, Thermo Fisher’s B·R·A·H·M·S PlGF plus KRYPTOR and B·R·A·H·M·S sFlt-1 KRYPTOR novel biomarkers — the first and only immunoassays to receive breakthrough designation and the FDA clearance for the risk assessment and clinical management of preeclampsia, a severe pregnancy complication. The same month, Thermo Fisher expanded its ImmunoCAP test availability across the U.S. These developments are expected to have contributed to the company’s to-be-reported quarter’s revenues backed by strong market adoption.
In terms of performance in high-growth and emerging markets, the company has made major investments in bioproduction of late. The opening of a new CGMP biologics and sterile manufacturing facility in Hangzhou, China which provides integrated clinical and commercial drug substance and drug product capabilities is likely to have contributed to the company’s top line.
Thermo Fisher entered into a collaboration agreement with Pfizer to help increase local access to next-generation sequencing (NGS)-based testing for lung and breast cancer patients in more than 30 countries across Latin America, Africa, the Middle East and Asia. We believe this partnership will have significant contribution to the company’s to-be-reported quarter performance.
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. Our model projects Laboratory Products and Services’ business to report $5.73 billion revenues in Q2, a 3.5% growth year over year.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $10.99 billion, suggesting a 0.2% rise from the prior-year quarter’s reported figure. The consensus mark for earnings is pegged at $5.43 per share, indicating a 1.5% decline from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Thermo Fisher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Thermo Fisher has an Earnings ESP of +1.18%. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering, as these too have the right combination of elements to post an earnings beat this quarter.
The Zacks Consensus Estimate for BSX’s second-quarter 2023 earnings is 49 cents per share, which indicates an improvement of 11.4% from the year-ago quarter’s reported figure. Boston Scientific’s earnings beat estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 1.88%
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) has an Earnings ESP of +6.50% and a Zacks Rank of 3, at present. The Zacks Consensus Estimate for REGN’s second-quarter 2023 earnings stands at $9.97 per share, implying 2.1% growth from the year-ago quarter’s reported figure.
Regeneron Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, the average surprise being 17.06%.
Addus HomeCare Corporation (ADUS - Free Report) currently has an Earnings ESP of +1.61% and a Zacks Rank #3. The Zacks Consensus Estimate for ADUS’s second-quarter 2023 earnings is pegged at 99 cents per share, suggesting a 8.8% rise from the prior-year quarter’s reported number.
Addus HomeCare’s earnings beat estimates in each of the trailing four quarters, the average surprise being 6.10%.
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 2023 results on Jul 26, 2023, before market open.
In the last reported quarter, Thermo Fisher’s earnings of $5.03 per share exceeded the Zacks Consensus Estimate by 1.6%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.99%.
Let's discuss the factors that are likely to get reflected in the upcoming results.
Factors at Play
Similar to the last reported quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales, banking on chromatography and mass spectrometry and the electron microscopy businesses. Per our model, Thermo Fisher’s Analytical Instruments’ business projected revenues is pegged at $1.71 billion for the second quarter, suggesting a 6.5% growth year over year.
The company is expected to have reco rded growth, driven by a favorable business mix and new launches. In the first quarter, TMO launched Applied Biosystems QuantStudio Absolute Q AutoRun dPCR Suite, an automated digital PCR solution to increase productivity for molecular research, including cell and gene therapy and cancer research. The launch of Invitrogen DynaGreen — microplastic-free magnetic beads for protein purification — backed by strong customer adoption, is also expected to have contributed to the second-quarter top line.
Within the Life-Science Solutions segment, the company is expected to have registered a decline due to moderation in pandemic related revenue in the segment.
In May 2023, Thermo Fisher Scientific and BRIN collaborated to Strengthen Research Infrastructure and Capabilities in Indonesia. TMO opened a new sterile drug facility in Singapore that will enable customers to deliver new medicines and vaccines in the Asia-Pacific market. These developments are expected to have expanded the company’s global reach, thus adding significantly to the second-quarter top line.
However, unfavorable macroeconomic condition and fluctuations in foreign currency might have impeded growth in Q2.
Per our model, the Life-Science Solutions’ business is expected to generate $2.98 billion revenues for the second quarter, calling for a 9.3% decline 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 microbiology and transplant diagnostics businesses. Our model projects Specialty Diagnostics’ business to report $1.21 billion revenues for the quarter to be reported, suggesting a 10% growth year over year.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
Furthermore, in May 2023, Thermo Fisher’s B·R·A·H·M·S PlGF plus KRYPTOR and B·R·A·H·M·S sFlt-1 KRYPTOR novel biomarkers — the first and only immunoassays to receive breakthrough designation and the FDA clearance for the risk assessment and clinical management of preeclampsia, a severe pregnancy complication. The same month, Thermo Fisher expanded its ImmunoCAP test availability across the U.S. These developments are expected to have contributed to the company’s to-be-reported quarter’s revenues backed by strong market adoption.
In terms of performance in high-growth and emerging markets, the company has made major investments in bioproduction of late. The opening of a new CGMP biologics and sterile manufacturing facility in Hangzhou, China which provides integrated clinical and commercial drug substance and drug product capabilities is likely to have contributed to the company’s top line.
Thermo Fisher entered into a collaboration agreement with Pfizer to help increase local access to next-generation sequencing (NGS)-based testing for lung and breast cancer patients in more than 30 countries across Latin America, Africa, the Middle East and Asia. We believe this partnership will have significant contribution to the company’s to-be-reported quarter performance.
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. Our model projects Laboratory Products and Services’ business to report $5.73 billion revenues in Q2, a 3.5% growth year over year.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $10.99 billion, suggesting a 0.2% rise from the prior-year quarter’s reported figure. The consensus mark for earnings is pegged at $5.43 per share, indicating a 1.5% decline from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Thermo Fisher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Thermo Fisher has an Earnings ESP of +1.18%. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering, as these too have the right combination of elements to post an earnings beat this quarter.
Boston Scientific Corporation (BSX - Free Report) has an Earnings ESP of +0.47% and a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BSX’s second-quarter 2023 earnings is 49 cents per share, which indicates an improvement of 11.4% from the year-ago quarter’s reported figure. Boston Scientific’s earnings beat estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 1.88%
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) has an Earnings ESP of +6.50% and a Zacks Rank of 3, at present. The Zacks Consensus Estimate for REGN’s second-quarter 2023 earnings stands at $9.97 per share, implying 2.1% growth from the year-ago quarter’s reported figure.
Regeneron Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, the average surprise being 17.06%.
Addus HomeCare Corporation (ADUS - Free Report) currently has an Earnings ESP of +1.61% and a Zacks Rank #3. The Zacks Consensus Estimate for ADUS’s second-quarter 2023 earnings is pegged at 99 cents per share, suggesting a 8.8% rise from the prior-year quarter’s reported number.
Addus HomeCare’s earnings beat estimates in each of the trailing four quarters, the average surprise being 6.10%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.