Thermo Fisher Scientific (TMO) delivered better-than-expected fourth-quarter and full-year results fueled by a proven growth strategy. Revenue and earnings topped consensus estimates as the company exceeded the goals it set out to accomplish in 2021. TMO shares rose 1.65% to close at $604.13 on February 2.
Thermo Fisher Scientific is a U.S. company specializing in analytical instruments, equipment reagents, and consumables. Its solutions are used in life sciences laboratories and specialty diagnostics.
Financial Results
Revenue in the quarter was up 1% year-over-year to $10.70 billion, exceeding consensus estimates of $8.84 billion. Organic revenue fell 4% year-over-year, while acquisitions increased revenue by about 6%. Revenue for the full year increased 22% year-over-year to $39.21 billion.
Adjusted earnings landed at $6.54 per share compared to $7.09 per share delivered the same quarter last year and above consensus estimates of $4.93 a share. Full-year adjusted EPS rose 28% year-over-year to $25.13.
During the year, Thermo Fisher Scientific accelerated its investments to enhance its capacity and capabilities. The company spent $2.5 billion to meet short and long-term customer demand. It also continued to build its industry-leading scale in high growth and emerging markets. The company is also building on its environmental sustainability initiatives as it seeks to reach net-zero carbon emission by 2050.
Stock Rating
Last week, Barclays analyst Luke Sergott reiterated a Buy rating on the stock with a $700 price target, implying 15.87% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average Thermo Fisher-price target of $686.67 implies 13.66% upside potential to current levels.
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