Thermo Fisher Beats Expectations, Raises Outlook

Thermo Fisher Scientific Inc. edged its earnings guidance higher for the year after revenue rose 6.2% in the latest quarter, boosted by the company's recent acquisitions, as the lab-equipment company readies to buy FEI Co.

Thermo Fisher now expects earnings-per share of $8.07 to $8.20 for 2016, instead of $8.05 to $8.19, and revenue to land between $17.84 billion and $18 billion, slightly lower than its April guidance of $17.86 billion to $18.04 billion.

In May, Thermo Fisher said it would buy microscope technology maker FEI Co. for $4.2 billion in cash, at $107.50 a share—a 14% premium over its closing price before the announcement. Casper said Thermo Fisher plans to leverage its position in the industry to spread the use of microscope technology technologies in life sciences and applied markets. The companies expect the deal to close by early 2017. The company just completed its acquisition of generics firm Affymetrix Inc. in March for $1.3 billion. Thermo Fisher said in May that the FEI deal is part of a $12 billion the company intends to spend on acquisitions through 2019.

Thermo Fisher said it saw strong performance in the latest quarter in emerging markets, led by China, South Korea and India.

Revenue rose 13% to $1.28 billion in the company's life science solutions segment. The analytical instruments segment saw its revenue rise 2% to $794 million, while specialty diagnostics rose 4% to $851 million and laboratory products and services increased 6% to $1.80 billion year-over-year.

For the quarter ended July 2, the company posted a profit of $516.6 million, or $1.30 in per-share earnings, up from $511.6 million, or $1.27 a share, a year ago. Adjusted, the most recent quarter's per-share earnings were $2.03.

Revenue rose to $4.54 billion from $4.27 billion. Organically, revenue grew 4%; however, revenue from the company's acquisitions rose overall revenue by 3%, slightly suppressed by foreign-exchange rates.

Thermo Fisher beat the expectations of analysts polled by Thomson Reuters, who forecast $2.01 in per-share earnings, on revenue of $4.5 billion.

Thermo Fisher stock has gained 15% over the past 12 months. Shares are inactive premarket at $158.90.

Write to Brittney Laryea at [e-mail]

(END) Dow Jones Newswires

July 28, 2016 07:55 ET (11:55 GMT)

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