Thermo Fisher Scientific (TMO) lifts guidance after topping Q1 expectations

Thermo Fisher Scientific (NYSE: TMO) shares rose 3.55% after the company reported first-quarter earnings and revenue that exceeded Wall Street's expectations. The company's adjusted earnings per share (EPS) came in at $5.11, surpassing the analyst estimate of $4.71. Revenue for the quarter also beat consensus estimates, reaching $10.34 billion against expectations of $10.16 billion.

The science-serving leader saw a slight decline in revenue compared to the same quarter last year, with a 3% drop from $10.71 billion in 2023. Despite the decrease in revenue, Thermo Fisher's adjusted EPS saw a 2% increase from the $5.03 reported in the first quarter of the previous year. The company's GAAP diluted EPS grew by 4% to $3.46, up from $3.32 in the first quarter of 2023.

Marc N. Casper, chairman, president, and CEO, expressed satisfaction with the company's strong financial results, attributing the successful quarter to Thermo Fisher's growth strategy and the PPI Business System. Casper highlighted the company's commitment to customer success, strong commercial execution, and operational discipline as key factors positioning Thermo Fisher for differentiated performance in 2024.

Looking ahead, Thermo Fisher has raised its full-year guidance for 2024, now expecting revenue to be between $42.3 billion and $43.3 billion and adjusted EPS to range from $21.14 to $22.02. The midpoint of the adjusted EPS guidance range, $21.58, is slightly above the analyst consensus of $21.53. The midpoint of the revenue guidance, $42.8 billion, is below the consensus estimate of $42.83 billion.

The company's proactive capital deployment was also notable in the first quarter, with a $3.0 billion stock repurchase and an 11% dividend increase. These actions reflect Thermo Fisher's confidence in its financial strength and commitment to delivering shareholder value.

Thermo Fisher's first-quarter performance, characterized by a robust earnings and revenue beat, has set a positive tone for the company's outlook in 2024.

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