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With a market cap of $233.9 billion, Thermo Fisher Scientific Inc. (TMO) is a global leader in the life sciences and diagnostics industry. The Waltham, Massachusetts-based company offers a wide range of products and services, including laboratory equipment, diagnostics, and biopharma solutions. TMO is expected to announce its Q3 earnings on Wednesday, Oct. 23.
Ahead of the event, analysts expect the maker of scientific instruments and laboratory supplies to report a profit of $5.25 per share, down 7.7% from $5.69 per share reported in the year-ago quarter. However, the company has consistently surpassed Wall Street’s EPS projections over the past four quarters. In the last reported quarter, TMO exceeded the consensus estimates by 4.7%.
In fiscal 2024, analysts expect TMO to report an EPS of $21.72, marginally up from $21.55 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 10.3% year over year to $23.96.
In 2024, TMO stock is up 13.2%, underperforming the S&P 500 Index’s ($SPX) 19.5% gains. But, the stock has outpaced the Health Care Select Sector SPDR Fund’s (XLV) 11.1% returns over the same time frame.
Thermo Fisher Scientific's shares surged 4.1% on Jul. 24 due to stronger-than-expected Q2 adjusted earnings of $5.37 per share and revenue of $10.5 billion. The growth was driven by robust sales in its laboratory and biopharma services segment. Additionally, the company raised its annual profit forecast, now expecting earnings in the range of $21.29 per share to $22.07 per share, further boosting investor confidence.
Moreover, recently, the company expanded its oral solid dose (OSD) development and manufacturing capabilities in North America with a $22 million investment in its Cincinnati and Bend sites. The expansion enhances R&D, manufacturing, and testing of OSD drug formulations, supporting faster drug development for biotech and pharma companies.
The consensus opinion on Thermo Fisher Scientific stock is bullish, with an overall “Strong Buy” rating. Among 23 analysts covering the stock, 16 recommend a “Strong Buy” rating, three give a “Moderate Buy” rating, and four suggest a “Hold” rating. This configuration is more bullish than three months ago, with 13 analysts suggesting a "Strong Buy." The average target price for TMO is $655.77, indicating a potential upside of just 9.1% from current price levels.
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