Thermo Fisher Scientific Lifts Full Year Outlook

By Maria Armental And Chelsey Dulaney 

Thermo Fisher Scientific Inc. on Wednesday lifted its full-year earnings and revenue guidance as profit nearly doubled in its second quarter.

The Massachusetts biotechnology company said it now expects to post revenue of $16.72 to $16.86 billion, up from its previous guidance of $16.67 to $16.83 billion. Thermo Fisher is now forecasting per-share earnings of $7.28 to $7.41, up from its previous guidance for $7.25 to $7.40 in earnings.

Formed by the 2006 merger of Thermo Electron and Fisher Scientific International, Thermo Fisher provides pharmaceutical and biotechnology companies, hospitals, research centers and laboratories with medical equipment and tools to help diagnose diseases and run clinical trials.

For the period ended June 27, Thermo Fisher reported a profit of $511.6 million, or $1.27 a share, up from $278.5 million, or 69 cents a share, a year earlier.

Profit was helped by a 7.5% decrease in costs and operating expenses compared with the prior-year period.

Excluding acquisition-related charges and other items, profit rose to $1.84 a share from $1.72 a year earlier.

Revenue edged down 1.2% to $4.27 billion, with currency translation bringing down revenue by 6%.

Analysts polled by Thomson Reuters had forecast $1.78 a share in earnings on $4.17 billion in sales.

Thermo Fisher said revenue grew 6% on an organic basis.

Revenue from the laboratory-products and services unit, which accounts for more than a third of sales, edged down slightly to $1.69 billion from $1.7 billion in the prior-year period.

Its analytical instruments and specialty diagnostics segments reported 2% and 4.4% revenue drops, respectively.

Life sciences solutions, which has been boosted by Thermo Fisher's 2014 acquisition of Life Technologies, reported a 2.4% sales increase to $1.13 billion.

Last month, Thermo Fisher agreed to acquire Johnson Matthey PLC's Alfa Aesar for GBP256 million in cash. That deal, expected to close this year, will grow its laboratory chemicals, solvents and reagents offerings.

Write to Maria Armental at [e-mail] and Chelsey Dulaney at [e-mail]

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