Thermo Fisher Scientific Beats on Both Top and Bottom Lines

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Thermo Fisher Scientific (NYS: TMO) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Thermo Fisher Scientific beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.


Gross margins improved, operating margins improved, and net margins dropped.

Revenue details
Thermo Fisher Scientific notched revenue of $3.11 billion. The 17 analysts polled by S&P Capital IQ wanted to see sales of $3.05 billion on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $2.90 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.22. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.16 per share. GAAP EPS of $0.63 for Q2 were 53% lower than the prior-year quarter's $1.35 per share. (The prior-year quarter included $0.79 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.2%, 340 basis points better than the prior-year quarter. Operating margin was 12.6%, 20 basis points better than the prior-year quarter. Net margin was 7.5%, 1,060 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $1.18.

Next year's average estimate for revenue is $12.33 billion. The average EPS estimate is $4.79.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 550 members out of 571 rating the stock outperform, and 21 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Thermo Fisher Scientific a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Thermo Fisher Scientific is outperform, with an average price target of $63.00.

The article Thermo Fisher Scientific Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Thermo Fisher Scientific. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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