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 Scientific, Inc. (TMO - Free Report) reported better-than-expected fourth-quarter and full-year 2016 earnings results. Adjusted earnings per share (EPS) in the quarter came in at $2.41, exceeding the Zacks Consensus Estimate by 1.68% and ahead of the year-ago quarter figure by 13.6%.
On a reported basis, fourth-quarter EPS of $1.59 marked 6% year-over-year improvement.
Full-year adjusted earnings came in at $8.27 per share, 11.9% improvement from the year-ago number and 4% improvement from the Zacks Consensus Estimate. The year’s adjusted EPS remained within but close to the upper-end of the company provided guidance range of $8.19–$8.30 per share.
Revenues for the fourth quarter came in at $4.95 billion, up 6.5% year over year. However, it missed the Zacks Consensus Estimate of $4.98 billion by 0.6%.
The year 2016 registered revenues of $18.27 billion, up 8% compared to the year-ago number. However, this also failed to meet the Zacks Consensus Estimate of $18.29 billion. Moreover, the reported revenue figure remains within but close to the upper-end of the guidance range of $8.19–$8.30.
Thermo Fisher Scientific Inc Price, Consensus and EPS Surprise
As expected, organic revenue in the fourth quarter was flat year over year, negatively affected by four fewer selling days. Revenues rose 8% on the back of acquisitions. Total revenue was 1%, offset by currency translation.
Thermo Fisher currently operates under four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services.
Revenues from the Life Sciences Solutions Segment improved 10% year over year to $1.34 billion, while Analytical Instruments Segment sales grew 32% to $1.22 billion. Revenues from the Laboratory Products and Services Segment declined 3.3% to $1.76 billion, while the Specialty Diagnostics Segment recorded a drop of 3.6% to $834 million.
Gross margin of 48.6% during the fourth quarter was up 103 basis points (bps) year over year on 8.8% rise in gross profit. Adjusted operating margin expanded approximately 91 bps to 23.8% despite the company incurring 4.9% rise in selling, general and administrative expenses and 17.9% increase in research and development expenses.
The company exited the full-year 2016 with cash and cash equivalents of $786.2 million compared with $452.1 million at the end of the previous year. Full-year operating cash flow was $3.16 billion compared with the year-ago figure of $2.82 billion.
Bottom Line
Thermo Fisher ended the year 2016 on a mixed note with adjusted earnings ahead of the Zacks Consensus Estimate and revenues lagging the same.
As we anticipated, Thermo Fisher’s top-line performance was affected by around four less selling days influence in the fourth quarter. The lesser number of days resulted in essentially flat year-over-year organic growth performance.
We remain encouraged by the company’s recent product launches along with strong growth in emerging markets and better management observed in its customer value proposition.
Looking ahead, Thermo Fisher recently completed the acquisition of FEI, which is expected to add leading capabilities in electron microscopy that in turn will complement the company’s analytical instruments portfolio.
Zacks Rank & Other Key Picks
Thermo Fisher currently carries a Zacks Rank #4 (Sell). Some better-ranked medical stocks are Glaukos Corporation (GKOS - Free Report) and Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . Glaukos sports a Zacks Rank #1 (Strong Buy), while Cardiovascular Systems and Neogen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison with the S&P 500’s gain of only 17.6%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison with the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 22.2% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth of 16.7% for the next five years compared with the industry average of 15.2%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Thermo Fisher (TMO) Q4 Earnings Beat, Organic Sales Flat
Thermo Fisher Scientific, Inc. (TMO - Free Report) reported better-than-expected fourth-quarter and full-year 2016 earnings results. Adjusted earnings per share (EPS) in the quarter came in at $2.41, exceeding the Zacks Consensus Estimate by 1.68% and ahead of the year-ago quarter figure by 13.6%.
On a reported basis, fourth-quarter EPS of $1.59 marked 6% year-over-year improvement.
Full-year adjusted earnings came in at $8.27 per share, 11.9% improvement from the year-ago number and 4% improvement from the Zacks Consensus Estimate. The year’s adjusted EPS remained within but close to the upper-end of the company provided guidance range of $8.19–$8.30 per share.
Revenues for the fourth quarter came in at $4.95 billion, up 6.5% year over year. However, it missed the Zacks Consensus Estimate of $4.98 billion by 0.6%.
The year 2016 registered revenues of $18.27 billion, up 8% compared to the year-ago number. However, this also failed to meet the Zacks Consensus Estimate of $18.29 billion. Moreover, the reported revenue figure remains within but close to the upper-end of the guidance range of $8.19–$8.30.
Thermo Fisher Scientific Inc Price, Consensus and EPS Surprise
Thermo Fisher Scientific Inc Price, Consensus and EPS Surprise | Thermo Fisher Scientific Inc Quote
Quarter in Detail
As expected, organic revenue in the fourth quarter was flat year over year, negatively affected by four fewer selling days. Revenues rose 8% on the back of acquisitions. Total revenue was 1%, offset by currency translation.
Thermo Fisher currently operates under four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services.
Revenues from the Life Sciences Solutions Segment improved 10% year over year to $1.34 billion, while Analytical Instruments Segment sales grew 32% to $1.22 billion. Revenues from the Laboratory Products and Services Segment declined 3.3% to $1.76 billion, while the Specialty Diagnostics Segment recorded a drop of 3.6% to $834 million.
Gross margin of 48.6% during the fourth quarter was up 103 basis points (bps) year over year on 8.8% rise in gross profit. Adjusted operating margin expanded approximately 91 bps to 23.8% despite the company incurring 4.9% rise in selling, general and administrative expenses and 17.9% increase in research and development expenses.
The company exited the full-year 2016 with cash and cash equivalents of $786.2 million compared with $452.1 million at the end of the previous year. Full-year operating cash flow was $3.16 billion compared with the year-ago figure of $2.82 billion.
Bottom Line
Thermo Fisher ended the year 2016 on a mixed note with adjusted earnings ahead of the Zacks Consensus Estimate and revenues lagging the same.
As we anticipated, Thermo Fisher’s top-line performance was affected by around four less selling days influence in the fourth quarter. The lesser number of days resulted in essentially flat year-over-year organic growth performance.
We remain encouraged by the company’s recent product launches along with strong growth in emerging markets and better management observed in its customer value proposition.
Looking ahead, Thermo Fisher recently completed the acquisition of FEI, which is expected to add leading capabilities in electron microscopy that in turn will complement the company’s analytical instruments portfolio.
Zacks Rank & Other Key Picks
Thermo Fisher currently carries a Zacks Rank #4 (Sell). Some better-ranked medical stocks are Glaukos Corporation (GKOS - Free Report) and Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . Glaukos sports a Zacks Rank #1 (Strong Buy), while Cardiovascular Systems and Neogen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison with the S&P 500’s gain of only 17.6%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison with the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 22.2% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth of 16.7% for the next five years compared with the industry average of 15.2%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>