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 (TMO) End Markets Drive Growth Amid Macro Woes
Read MoreHide Full Article
Thermo Fisher Scientific (TMO - Free Report) has been gaining from strategic buyouts and partnerships. Its end-market performance continues to remain robust. The stock currently carries a Zacks Rank #2 (Buy).
Within the pharma and biotech end market, Thermo Fisher’s biosciences and bioproduction businesses have significantly expanded their capacity to meet global vaccine manufacturing requirements.
The company's pharma services business has been providing pharma and biotech customers with the services needed to develop and produce vaccines and therapies globally. In terms of the latest update, in the third quarter, within the end market, the company registered the strongest growth in its pharma services business.
In the academic and government end markets, Thermo Fisher is delivering strong growth in the electron microscopy, chromatography and mass spectrometry businesses. In the third quarter, this end market showed a high single-digit growth. Within the diagnostics and healthcare end market, the company, in the third quarter, delivered robust core business growth driven by the immunodiagnostics, microbiology and transplant diagnostics businesses.
Its recent strategic acquisitions are likely to fuel future growth. In October 2023, Thermo Fisher announced its proposal to acquire Olink Holdings for $26.00 per common share in cash, representing $26.00 per American Depositary Share in cash. The proposal has been approved by both companies’ boards of directors.
The acquisition will enhance Thermo Fisher’s capabilities in the high-growth proteomics market with the addition of highly differentiated solutions. Through this acquisition, the company expects to deliver $125 million in adjusted operating income synergies in year five, driven by revenue synergies and cost efficiencies.
TMO continues to expand business banking on strategic alliances. In October 2023, the company entered a companion diagnostic partnership with Boehringer Ingelheim to support emerging precision therapies and improve patient outcomes by increasing access to reliable genomic testing needed to match patients with targeted cancer treatments.
In September 2023, Thermo Fisher collaborated with the National Minority Quality Forum (“NMQF”) to help bring clinical research to historically underserved patient populations through NMQF’s Alliance for Representative Clinical Trials. The NMQF and TMO's clinical research division will aid in increasing community health clinics' capacity to participate in clinical studies.
Yet, the challenging macroeconomic scenario and slower economic recovery in China continue to hurt Thermo Fisher's growth. The company has been witnessing headwinds in the government and academic end market. Moreover, many countries in Europe are also going through a tough time that might impact these countries’ academic budgets. TMO remains cautious since growth could further moderate if the economic scenario worsens.
In lieu of this, during the third quarter of 2023, Thermo Fisher registered a year-over-year decline in sales in North America and Asia Pacific. Further, China declined in the high single digits. Our estimate suggests that the Asia Pacific region will decrease 4.6% in 2023.
On account of its diversified portfolio, the firm faces different types of competitors, including a broad range of manufacturers and third-party distributors. The competitive landscape is quite challenging with changing technology and customer demands that require continuing research and development.
Over the past year, shares of TMO have declined 3.1% against the industry’s 1.7% growth.
Estimates for Insulet’s 2023 earnings per share have remained constant at $1.91 in the past 30 days. Shares of the company have lost 26.3% in the past year against the industry’s growth of 3.7%.
PODD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Shares of Haemonetics have gained 8.7% in the past year. Earnings estimates for Haemonetics have remained constant at $3.89 in 2023 and at $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.43 to $1.44 in the past 30 days. Shares of the company have gained 9.6% in the past year compared with the industry’s 3.8% growth.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Thermo Fisher (TMO) End Markets Drive Growth Amid Macro Woes
Thermo Fisher Scientific (TMO - Free Report) has been gaining from strategic buyouts and partnerships. Its end-market performance continues to remain robust. The stock currently carries a Zacks Rank #2 (Buy).
Within the pharma and biotech end market, Thermo Fisher’s biosciences and bioproduction businesses have significantly expanded their capacity to meet global vaccine manufacturing requirements.
The company's pharma services business has been providing pharma and biotech customers with the services needed to develop and produce vaccines and therapies globally. In terms of the latest update, in the third quarter, within the end market, the company registered the strongest growth in its pharma services business.
In the academic and government end markets, Thermo Fisher is delivering strong growth in the electron microscopy, chromatography and mass spectrometry businesses. In the third quarter, this end market showed a high single-digit growth. Within the diagnostics and healthcare end market, the company, in the third quarter, delivered robust core business growth driven by the immunodiagnostics, microbiology and transplant diagnostics businesses.
Thermo Fisher Scientific Inc. Price
Thermo Fisher Scientific Inc. price | Thermo Fisher Scientific Inc. Quote
Its recent strategic acquisitions are likely to fuel future growth. In October 2023, Thermo Fisher announced its proposal to acquire Olink Holdings for $26.00 per common share in cash, representing $26.00 per American Depositary Share in cash. The proposal has been approved by both companies’ boards of directors.
The acquisition will enhance Thermo Fisher’s capabilities in the high-growth proteomics market with the addition of highly differentiated solutions. Through this acquisition, the company expects to deliver $125 million in adjusted operating income synergies in year five, driven by revenue synergies and cost efficiencies.
TMO continues to expand business banking on strategic alliances. In October 2023, the company entered a companion diagnostic partnership with Boehringer Ingelheim to support emerging precision therapies and improve patient outcomes by increasing access to reliable genomic testing needed to match patients with targeted cancer treatments.
In September 2023, Thermo Fisher collaborated with the National Minority Quality Forum (“NMQF”) to help bring clinical research to historically underserved patient populations through NMQF’s Alliance for Representative Clinical Trials. The NMQF and TMO's clinical research division will aid in increasing community health clinics' capacity to participate in clinical studies.
Yet, the challenging macroeconomic scenario and slower economic recovery in China continue to hurt Thermo Fisher's growth. The company has been witnessing headwinds in the government and academic end market. Moreover, many countries in Europe are also going through a tough time that might impact these countries’ academic budgets. TMO remains cautious since growth could further moderate if the economic scenario worsens.
In lieu of this, during the third quarter of 2023, Thermo Fisher registered a year-over-year decline in sales in North America and Asia Pacific. Further, China declined in the high single digits. Our estimate suggests that the Asia Pacific region will decrease 4.6% in 2023.
On account of its diversified portfolio, the firm faces different types of competitors, including a broad range of manufacturers and third-party distributors. The competitive landscape is quite challenging with changing technology and customer demands that require continuing research and development.
Over the past year, shares of TMO have declined 3.1% against the industry’s 1.7% growth.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Insulet (PODD - Free Report) , Haemonetics (HAE - Free Report) and DexCom (DXCM - Free Report) . While Insulet sports a Zacks Rank #1 (Strong Buy), Haemonetics and DexCom presently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Insulet’s 2023 earnings per share have remained constant at $1.91 in the past 30 days. Shares of the company have lost 26.3% in the past year against the industry’s growth of 3.7%.
PODD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Shares of Haemonetics have gained 8.7% in the past year. Earnings estimates for Haemonetics have remained constant at $3.89 in 2023 and at $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.43 to $1.44 in the past 30 days. Shares of the company have gained 9.6% in the past year compared with the industry’s 3.8% growth.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.