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Thermo Fisher Scientific Eyeing 2016 Revenues of $14.5B to $15.5B

NEW YORK (GenomeWeb News) – Based on expectations of mid-single digit organic revenue growth annually, Thermo Fisher Scientific's revenues for 2016 could fall between $14.5 billion and $15.5 billion, the company said in a presentation at its analyst meeting today.

In the presentation, the Waltham, Mass.-based company added that adjusted EPS for 2016 is expected to fall in the $7.50 to $8.75 range with free-cash flow of between $2.2 billion and $2.5 billion.

The estimates are based on a long-term model the firm is using that calls for low to mid-teen annual growth for its adjusted EPS.

In February, Thermo Fisher reported $11.73 billion in revenues for full-year 2011, an 11 percent increase from $10.57 billion in 2010. Its 2011 net income was $1.33 billion, or $3.46 per share.

Thermo Fisher also said that it plans to ramp up its presence in Asia-Pacific and the emerging markets. Last year, about 19 percent of its business came from the APAC and emerging markets. By 2016, it has a goal of increasing that figure to 25 percent with a strategy that seeks to replicate a "successful China/India formula" in other countries, such as South Korea, Taiwan, Brazil, and Russia.

It will expand its manufacturing footprint to serve local markets and capitalize on a "huge demand" for specialty diagnostics, Thermo Fisher said.

The firm reiterated its FY 2012 guidance for revenues between $12.27 billion and $12.43 billion, and adjusted EPS between $4.71 and $4.83. The current consensus Wall Street estimates are revenues of $12.42 billion and adjusted EPS of $4.80.

In Wednesday morning trade on the New York Stock Exchange shares of Thermo Fisher were down a little more than 2 percent at $50.11.

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