Post Earnings Coverage as Thermo Fisher’s Quarterly Revenue Grew 11%; GAAP EPS Surged 39%

Upcoming AWS Coverage on PerkinElmer Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 1, 2017 / Active Wall St. announces its post-earnings coverage on Thermo Fisher Scientific Inc. (NYSE: TMO). The Company disclosed its first quarter fiscal 2017 results on April 26, 2017. The maker of scientific instrument and laboratory supplies outperformed top- and bottom-line expectations and also raised its earnings and revenue forecasts for FY17. Register with us now for your free membership at:

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One of Thermo Fisher Scientific’s competitors within the Medical Laboratories & Research space, PerkinElmer, Inc. (NYSE: PKI), announced on April 07, 2017, that on Thursday, May 04, 2017, after market close, it will release Q1 2017 results. The Company will also host a conference call the same day at 5:00 p.m. ET to discuss these results. Robert Friel, Chairman and CEO, and Andy Wilson, Senior Vice President and CFO, will host the conference call. AWS will be initiating a research report on PerkinElmer in the coming days.

Today, AWS is promoting its earnings coverage on TMO; touching on PKI. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended April 01, 2017, Thermo Fisher’s revenue grew 11% to $4.77 billion versus $4.29 billion in Q1 2016. For the reported quarter, the Company’s organic revenue growth was 4%; acquisitions increased revenue by 8% and currency translation reduced revenue by 1%. The Company’s revenue numbers topped analysts’ consensus of $4.68 billion.

For Q1 2017, Thermo Fisher’s GAAP operating income grew to $622 million compared with $518 million in Q1 2016. The Company’s GAAP operating margin increased to 13.1% for the reported quarter compared with 12.1% in the prior year’s same quarter. Thermo Fisher’s adjusted operating income for Q1 2017 also grew 16% on a y-o-y basis, while adjusted operating margin expanded 90 basis points to 22.6% compared with 21.7% in the year ago comparable period.

Thermo Fisher reported Q1 2017 net income of $551.4 million. The Company’s GAAP diluted EPS in the reported quarter increased 39% to $1.40, versus $1.01 in the prior year same quarter, partly reflecting a one-time tax benefit. The Company’s adjusted EPS for Q1 2017 rose 16% to $2.08 versus $1.80 in Q1 2016. Thermo Fisher’s earnings results surpassed Wall Street’s expectations of $2.02 per share.

Segment Results

In Q1 2017, Thermo Fisher’s Life Sciences Solutions segment’s revenue grew 12% to $1.36 billion compared with revenue of $1.22 billion in Q1 2016. The segment’s adjusted operating margin increased to 31.8% in the reported quarter compared to 28.9% in the prior year’s same quarter.

Thermo Fisher’s Analytical Instruments segment’s results reflect the acquisition of FEI Company in September 2016. Revenue for the segment grew 39% to $1.05 billion in Q1 2017 compared with revenue of $759 million in Q1 2016. The Analytical Instruments segment’s adjusted operating margin increased to 18.2% versus 14.7% in the year ago same quarter.

During Q1 2017, Thermo Fisher’s Specialty Diagnostics segment’s revenue grew 1% to $866 million compared with revenue of $855 million in Q1 2016. The segment’s adjusted operating margin increased to 27.0% in the reported quarter versus 26.9% in the prior year’s same quarter.

For Q1 2017, Thermo Fisher’s Laboratory Products and Services segment generated revenue of $1.70 billion, up 3% compared with revenue of $1.65 billion in Q1 2016. For the reported quarter, the segment posted adjusted operating margin of 12.7% versus 14.4% in the year earlier corresponding quarter.

Balance Sheet and Cash Flow

For Q1 2017, Thermo Fisher’s cash flow from continuing operations was $360 million and free cash flow was $270 million after deducting net capital expenditures of $90 million. The Company ended the quarter with $715 million in cash and investments.

During Q1 2017, Thermo Fisher also completed a total of $500 million of share buybacks and returned $60 million to shareholders through dividends. The Company’s total debt at the end of Q1 2017 was $17.1 billion, up $500 million sequentially from Q4 2016, mainly driven by the increase in short-term debt relating to acquisitions and share repurchase activities. Thermo Fisher leverage ratio at the end of Q1 2017 was 3.6x total debt to adjusted EBITDA. The Company’s trailing 12 months adjusted ROIC at the end of Q1 2017 was 10%, up 10 basis points sequentially from Q4 and up 40 basis points over Q1 2016.

Outlook

Thermo Fisher raised its revenue and adjusted EPS guidance for fiscal year 2017 to reflect a strong first quarter performance, less adverse foreign exchange environment, and acquisitions completed in 2017. The Company raised its revenue guidance to a range of $19.51 billion to $19.71 billion versus its original guidance of $19.38 billion to $19.62 billion announced in January 2017. The Company also increased its adjusted EPS forecast to the band of $9.12 to $9.28 versus the $9.06 to $9.24 previously disclosed.

Stock Performance

On Friday, April 28, 2017, the stock closed the trading session at $165.33, slightly slipping 0.82% from its previous closing price of $166.70. A total volume of 1.51 million shares have exchanged hands. Thermo Fisher Scientific’s stock price advanced 13.78% in the last three months, 11.90% in the past six months, and 14.22% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 17.28%. The stock is trading at a PE ratio of 30.12 and has a dividend yield of 0.36%.

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