Thermo Fisher Reports Strong Q3 Results; Analysts Remain Bullish


Thermo Fisher Scientific, Inc. (TMO) has reported better-than-expected third-quarter 2021 results on the back of strong performance in Laboratory Products and Services segment. The company provides analytical instruments, equipment, reagents and consumables, software and services for research, analysis, discovery, and diagnostics.

Adjusted earnings of $5.76 per share surpassed the consensus estimate of $4.67 per share. The company had reported earnings of $5.63 per share in the same quarter last year.

Quarterly revenues climbed 9% year-over-year to $9.33 billion and beat the Street’s expectations of $8.39 billion. Qrganic revenue growth from the base business stood at 10% in the third quarter. Also, COVID-19 response revenue was $2.05 billion. (See Thermo Fisher stock chart on TipRanks)

Life Sciences Solutions segment’s revenue grew 9% year-over-year to $3.72 billion; revenue of Analytical Instruments segment climbed 11% to $1.48 billion; and revenue of Laboratory Products and Services unit jumped 12% to $3.49 billion. However, revenue of Specialty Diagnostics segment declined 4.9% to $1.36 billion.

The Chairman, President and CEO of Thermo Fisher, Marc N. Casper, said, “Our incredibly strong performance in the third quarter demonstrates our proven growth strategy powered by our PPI Business System. We continue to deliver exceptional performance in revenue, earnings and free cash flow. And we are launching innovative new products and expanding our capabilities and capacity to enhance our customer value proposition.”

Notably, the company has raised its revenue and earnings guidance for 2021. TMO has lifted its revenue projection by $1.2 billion to $37.1 billion and adjusted EPS outlook by $1.30 to $23.37. The figures represent 15% and 20% year-over-year growth, respectively.

Following the release, Benchmark Co. analyst Robert Wasserman maintained a Buy rating on Thermo Fisher with a price target of $650. The price target implies 6.2% upside potential.

Also, Evercore ISI analyst Vijay Kumar reiterated a Buy rating on the stock with a price target of $645 (5.3% upside potential).

Consensus among analysts is a Strong Buy based on 15 Buys and 1 Hold. The average Thermo Fisher price target of $663.69 implies 8.4% upside potential.

Thermo Fisher scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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