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Thermo Fisher (TMO) Beats on Earnings and Revenues in Q4
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Thermo Fisher Scientific Inc.’s (TMO - Free Report) fourth-quarter 2018 adjusted earnings per share (EPS) came in at $3.25, beating the Zacks Consensus Estimate of $3.19 by 1.9%. The figure also improved from the year-ago quarterly figure by 16.5%.
On a reported basis, EPS was $2.22, compared with $1.30 in the year-ago quarter. Notably, the EPS figure reflects an impact of a one-time tax provision in relation with the U.S. tax reform.
2018 adjusted EPS came in at $11.12, up 17.2% year over year. The figure also surpassed the Zacks Consensus Estimate of $11.05 by 0.6%.
Revenues in the quarter under review grossed $6.51 billion, up 7.6% year over year. The top line outpaced the Zacks Consensus Estimate of $6.24 billion.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
Revenues in 2018 came in at $24.36 billion, up 16.4% year over year. The figure also surpassed the Zacks Consensus Estimate of $24.08 billion.
Quarter in Detail
Organic revenues in the reported quarter grew 8% year over year while acquisitions drove revenues by 1%. Currency translation affected total revenues by 2%.
Thermo Fisher operates under four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics and Laboratory Products and Services.
Revenues at the Life Sciences Solutions segment (26.1% of total revenues) improved 7.6% year over year to $1.70 billion while Analytical Instruments Segment sales (24.1%) rose 11.3% to $1.57 billion.
Revenues at the Laboratory Products and Services segment (40%) rose 8.3% to $2.60 billion. The Specialty Diagnostics segment (14.6%) recorded a 4% rise to $0.95 billion.
Gross margin of 46.9% during the fourth quarter was up 60 basis points (bps) year over year on an 8.9% improvement in gross profits. Adjusted operating margin expanded 130 bps to 24.4% on a 13.6% rise in adjusted operating profit.
The company exited 2018 with cash and cash equivalents of $2.10 billion, compared with $1.34 billion in 2017. In 2018, net cash provided by operating activities was $4.54 billion compared with $4.01 billion a year ago.
2019 Guidance
The company will issue the outlook for 2019 in the earnings conference call.
Bottom Line
Thermo Fisher ended the fourth quarter on a promising note with adjusted earnings and revenues surpassing the consensus mark.
We are encouraged by the company's solid international performance with strong year-over-year growth in Asia-Pacific and emerging markets, including China. Also, the company recently opened its first Bioprocess Design Center for supporting development of biologics in China.
Meanwhile, investors are eyeing Thermo Fisher’s latest move to divest its Anatomical Pathology business. PHC Holdings, a Japanese healthcare company, has agreed to buy this business for a cash consideration of $1.14 billion. Thermo Fisher expects this transaction to close in the second quarter of 2019, subject to customary closing conditions and applicable regulatory approvals.
Notably, the Anatomical Pathology business of Thermo Fisher comes under its Specialty Diagnostics segment that serves customers in healthcare and clinical laboratories.
Zacks Rank & Key Picks
Thermo Fisher currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Varian Medical Systems , AngioDynamics (ANGO - Free Report) and CONMED Corporation (CNMD - Free Report) .
AngioDynamics’ fiscal second-quarter adjusted earnings of 22 cents per share beat the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, surpassing the consensus estimate by 2.9%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Varian’s fiscal first-quarter adjusted earnings of $1.06 per share were in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock has a Zacks Rank #2 (Buy).
CONMED’s fourth-quarter adjusted earnings per share of 73 cents met the Zacks Consensus Estimate. Revenues of $242.4 million surpassed the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Thermo Fisher (TMO) Beats on Earnings and Revenues in Q4
Thermo Fisher Scientific Inc.’s (TMO - Free Report) fourth-quarter 2018 adjusted earnings per share (EPS) came in at $3.25, beating the Zacks Consensus Estimate of $3.19 by 1.9%. The figure also improved from the year-ago quarterly figure by 16.5%.
On a reported basis, EPS was $2.22, compared with $1.30 in the year-ago quarter. Notably, the EPS figure reflects an impact of a one-time tax provision in relation with the U.S. tax reform.
2018 adjusted EPS came in at $11.12, up 17.2% year over year. The figure also surpassed the Zacks Consensus Estimate of $11.05 by 0.6%.
Revenues in the quarter under review grossed $6.51 billion, up 7.6% year over year. The top line outpaced the Zacks Consensus Estimate of $6.24 billion.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise | Thermo Fisher Scientific Inc. Quote
Revenues in 2018 came in at $24.36 billion, up 16.4% year over year. The figure also surpassed the Zacks Consensus Estimate of $24.08 billion.
Quarter in Detail
Organic revenues in the reported quarter grew 8% year over year while acquisitions drove revenues by 1%. Currency translation affected total revenues by 2%.
Thermo Fisher operates under four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics and Laboratory Products and Services.
Revenues at the Life Sciences Solutions segment (26.1% of total revenues) improved 7.6% year over year to $1.70 billion while Analytical Instruments Segment sales (24.1%) rose 11.3% to $1.57 billion.
Revenues at the Laboratory Products and Services segment (40%) rose 8.3% to $2.60 billion. The Specialty Diagnostics segment (14.6%) recorded a 4% rise to $0.95 billion.
Gross margin of 46.9% during the fourth quarter was up 60 basis points (bps) year over year on an 8.9% improvement in gross profits. Adjusted operating margin expanded 130 bps to 24.4% on a 13.6% rise in adjusted operating profit.
The company exited 2018 with cash and cash equivalents of $2.10 billion, compared with $1.34 billion in 2017. In 2018, net cash provided by operating activities was $4.54 billion compared with $4.01 billion a year ago.
2019 Guidance
The company will issue the outlook for 2019 in the earnings conference call.
Bottom Line
Thermo Fisher ended the fourth quarter on a promising note with adjusted earnings and revenues surpassing the consensus mark.
We are encouraged by the company's solid international performance with strong year-over-year growth in Asia-Pacific and emerging markets, including China. Also, the company recently opened its first Bioprocess Design Center for supporting development of biologics in China.
Meanwhile, investors are eyeing Thermo Fisher’s latest move to divest its Anatomical Pathology business. PHC Holdings, a Japanese healthcare company, has agreed to buy this business for a cash consideration of $1.14 billion. Thermo Fisher expects this transaction to close in the second quarter of 2019, subject to customary closing conditions and applicable regulatory approvals.
Notably, the Anatomical Pathology business of Thermo Fisher comes under its Specialty Diagnostics segment that serves customers in healthcare and clinical laboratories.
Zacks Rank & Key Picks
Thermo Fisher currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Varian Medical Systems , AngioDynamics (ANGO - Free Report) and CONMED Corporation (CNMD - Free Report) .
AngioDynamics’ fiscal second-quarter adjusted earnings of 22 cents per share beat the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, surpassing the consensus estimate by 2.9%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Varian’s fiscal first-quarter adjusted earnings of $1.06 per share were in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock has a Zacks Rank #2 (Buy).
CONMED’s fourth-quarter adjusted earnings per share of 73 cents met the Zacks Consensus Estimate. Revenues of $242.4 million surpassed the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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