Thermo Electron Expects 7-Percent Revenue Growth in 2006; Leerink Swann Initiates Coverage

NEW YORK, Dec. 22 (GenomeWeb News) - Thermo Electron issued its financial guidance for 2006 today, expecting 16 percent growth in earnings and 7 percent on revenues.

Annual revenue for 2006 is expected to grow 7 percent, to between $2.78 billion and $2.83 billion, compared with the company's 2005 estimate of $2.61 billion to $2.63 billion.

The Waltham, Mass.-based company expects 2006 earnings per share of $1.75 to $1.80 before subtracting $.10 for stock option expensing during the year.

Marjin Dekkers, president and CEO, said the company expects "accelerated expansion" of its operating margins and that it will improve "well above 100 basis points for the year."

The guidance does not reflect any acquisitions or divestures the company may complete in 2006, but it does reflect the favorable impact from acquisitions completed in 2005 and expected organic growth of 4 percent to 5 percent, Thermo Electron said.

The company also affirmed its expected 2005 adjusted earnings guidance of $1.51 to $1.54 per share.

In separate news, investment bank Leerink Swann & Company initiated coverage of Thermo Electron with an "Outperform" rating today.

Senior biotechnology analyst John Sullivan cited Thermo Electron's global reach, new products, strong management, and execution as reasons for the rating.