NEW YORK (GenomeWeb) – Thermo Fisher Scientific today reported a 4 percent year-over-year increase in its fourth quarter revenues.
For the three months ended Dec. 31, 2015, Thermo Fisher said that revenues totaled $4.65 billion compared to $4.49 billion in Q4 2014 and beating the consensus Wall Street estimate of $4.55 billion.
Organic revenues grew 7 percent year over year, the company said, while acquisitions increased revenues by 1 percent. Currency translation reduced revenues by 4 percent.
In a statement, the firm highlighted new product launches and growth in the Asia Pacific region. "Our strong performance in 2015 demonstrates the success of our growth strategy, which is based on technology innovation, scale in Asia-Pacific and emerging markets, and our unique customer value proposition," Thermo Fisher CEO Marc Casper said. "We also successfully integrated Life Technologies," which it acquired in 2014 for $13.6 billion.
The firm's financial results did not include the planned acquisition of Affymetrix, announced after the year's end.
By segment, Life Sciences Solutions posted $1.21 billion in revenues compared to $1.19 billion a year ago. Analytical Instruments had $925.3 million in revenues compared to $902.4 million in Q4 2014, while Specialty Diagnostics revenues were up to $864.7 million from $863 million, and Laboratory Products and Services revenues increased to $1.82 billion from $1.68 billion.
Thermo Fisher posted a profit of $602.6 million, or $1.50 per share, for the fourth quarter, up from a profit of $601.2 million, or $1.49 per share, a year ago. Adjusted EPS was $2.12, beating the consensus Wall Street estimate of $2.11.
Its R&D spending fell 1 percent year over year to $180.3 million from $182.5 million, while its SG&A costs fell 4 percent to $968.7 million from $1.01 billion. During the quarter, Thermo Fisher spent $47.4 million on restructuring and other costs compared to $33.7 million a year ago.
For full-year 2015, Thermo Fisher said that its revenues increased to $16.97 billion from $16.89 billion, beating the average analyst estimate of $16.87 billion.
Organically, revenues grew 5 percent year over year, while acquisitions, net of divestitures, added 1 percent in growth. Currency effects reduced revenue by 6 percent.
Life Sciences Solutions revenues accounted for 26 percent of revenues at $4.44 billion, up from $4.20 billion in 2014, and Analytical Instruments sales fell to $3.21 billion from $3.25 billion. Specialty Diagnostics revenues fell to $3.24 billion from $3.34 billion a year ago and Laboratory Products and Services grew to $6.66 billion from $6.60 billion.
Thermo Fisher posted net income for FY 2015 of $1.98 billion, or $4.92 per share, compared to net income of $1.89 billion, or $4.71 per share, in 2014. Adjusted EPS was $7.39, just above analysts' average estimate of $7.38.
The company's R&D spending in 2015 was nearly flat at $692.3 million compared to $691.1 million in 2014. Its SG&A costs fell 7 percent year over year to $3.72 billion from $3.99 billion. It reported costs of $115.3 million from restructuring and other activities in 2015 compared to a gain of $598.2 million in 2014.
The firm deployed approximately $1.4 billion in cash on mergers and acquisitions, stock buybacks, dividends, and debt repayment during the year.
Thermo Fisher ended the year with $452.1 million in cash and cash equivalents.
On the call, Thermo Fisher officials said that they anticipate revenue growth in the 3 percent to 4 percent range in FY 2016, assuming a foreign exchange headwind of 2 percent, and anticipate organic revenue growth of about 4 percent. Adjusted EPS is expected to grow between 6 percent and 8 percent.
For full-year 2016, the company provided guidance for revenues of between $17.36 billion and $17.56 billion. The guidance assumes a continued headwind from currency effects, company officials said, but to a lesser degree than in 2015. The firm anticipates adjusted EPS to be in the range of $7.80 to $7.96.
Officials added that the guidance does not take into account the Affymetrix acquisition, which they expect to close in the second quarter of 2016. The firm will provide an updated guidance at that time.