Thermo Fisher CEO likes third-quarter results, Wall Street doesn’t | Southern Lehigh County

Thermo Fisher Scientific, which has a laboratory in Center Valley, Lehigh County, and a location in Allentown, highlighted new products it launched in the third quarter of 2024 in its quarterly report to the financial community. However, the new products brought the company limited financial results.

Sales remained almost unchanged compared to the third quarter of 2023. Adjusted operating income and adjusted operating margin also declined year-over-year, as did adjusted earnings per share.

“We are pleased to deliver strong financial results in the third quarter, reflecting another quarter of sequential growth improvement,” Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher Scientific, said in a statement. “We continue to deliver differentiated services through our proven growth strategy and PPI business system.”

Apparently Wall Street trusted the company’s numbers rather than the CEO’s comments, and Thermo Fisher shares were down more than 3% in mid-morning trading.

Thermo Fisher Scientific Inc. (NYSE: TMO) offers its products and services through various brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD.

Innovations

Thermo Fisher said it launched a number of impactful, innovative new products during the quarter. To enable the development of advanced materials, the company says it has launched the Ilian scanning transmission electron microscope, which integrates a number of its advanced technologies into a user-friendly workflow to enable exploration of the most challenging modern materials down to the atomic level.

To advance life science research, the company launched Thermo Fisher Applied Biosystems’ MagMAX Sequential DNA/RNA kit, which maximizes the isolation of DNA and RNA from blood cancer samples and helps researchers gain unique insights into cancer-causing genetic alterations; and the Invitrogen Vivofectamine Delivery Solutions, which Thermo Fisher claims represent a novel method for delivering nucleic acids to multiple targets with therapeutic effects, paving the way for groundbreaking new medicines.

During the quarter, Thermo Fisher announced a partnership with the National Cancer Institute on the myeloMATCH precision medicine umbrella trial that will use its next-generation sequencing technology to test patients for specific genetic biomarkers to more quickly provide them with optimal treatments based on their individual characteristics assign cancer profile.

In its pharmaceutical services business, the company also noted the expansion of its sites in Cincinnati, Ohio, and Bend, Oregon, to further enhance its solid dose formulation capabilities for pharmaceutical and biotech customers.

In clinical research, Thermo Fisher announced the expansion of its global laboratory services network with a new bioanalytical laboratory in Gothenburg, Sweden, which will provide pharmaceutical and biotech customers with advanced laboratory services to support all phases of drug development.

Third Quarter 2024 Operating Results

Thermo Fisher reported quarterly revenue of $10.60 billion in 2024, compared to $10.57 billion in 2023. Top-line, organic revenue, and core organic revenue growth all improved from the second quarter compared to the previous quarter, but remained unchanged compared to the same quarter last year.

According to the company, diluted GAAP (Generally Accepted Accounting Principles) earnings per share (EPS) were $4.25 in the third quarter of 2024, compared to $4.42 in the year-ago quarter. GAAP operating income for the third quarter of 2024 was $1.84 billion, compared to $1.86 billion in the year-ago quarter. GAAP operating margin was 17.3%, compared to 17.6% in the third quarter of 2023.

In non-GAAP results, Thermo Fisher reported adjusted earnings per share for the third quarter of 2024 of $5.28, compared to $5.69 for the third quarter of 2023. Adjusted operating income for the third quarter of 2024 was $2.36 billion, compared to $2.56 billion a year ago. before quarter. Adjusted operating margin was 22.3%, compared to 24.2% in the third quarter of 2023.

Annual forecast for 2024

Casper commented: “Looking forward, we are in an excellent position to achieve our 2024 goals as we continue to create value for all of our stakeholders and build an even brighter future for our company.”

Thermo Fisher raised the low end of its full-year adjusted earnings per share forecast to a new range of $21.35 to $22.07, up from its previous forecast of $21.29 to $22.07. Revenue guidance remains in the range of $42.4 billion to $43.3 billion.