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Thermo Fisher Reports Q1 Revenues Up 10 Percent, Raises Full-Year Guidance

NEW YORK (GenomeWeb) – Thermo Fisher Scientific today reported that its first quarter revenues increased 10 percent in a quarter that included four extra days compared to the prior year period.

For the three months ended April 2, Thermo Fisher reported revenue of $4.29 billion, up from $3.92 billion in the first quarter of 2015, and beating the average analyst estimate of $4.11 billion. Organic revenue grew 10 percent while acquisitions increased revenue by 1 percent.

On a conference call following the release of results, Thermo Fisher officials noted that revenues throughout the company benefitted from the four extra days in the first quarter, while currency headwinds decreased total revenue by 2 percent.Life Sciences Solutions revenue grew 11 percent to $1.13 billion from $1.02 billion in the first quarter of 2015. Analytical Instruments revenue increased 4 percent to $759 million from $727 million in 2015. Specialty Diagnostics revenue increased 9 percent to $855 million from $785 million in 2015, driven by solid growth in all businesses in the segment. Laboratory Products and Services revenue jumped 14 percent to $1.72 billion from $1.51 billion in the prior year period.

The company enjoyed growth in all key geographies and "very strong" growth in the Asia-Pacific region, driven by India and China. Pharma and biotechnology continued to be strong end markets for the company, while it saw "continued weakness" in the industrial end market and strain in applied end markets.

"We're pleased with our strong start to the year," Thermo Fisher CEO Marc Casper said. "Our growth strategy is clearly working." He noted that the firm deployed $2.4 billion of capital on stock buybacks, dividends, and mergers and acquisitions — including the $1.3 billion purchase of Affymetrix announced and completed during the quarter, a quarter earlier than planned.

Thermo Fisher posted a net profit of $402.2 million, or $1.01 per share, compared to a profit of $385.1 million a year ago, or $.96 per share. On an adjusted basis, the firm had EPS of $1.80, beating the consensus Wall Street estimate of $1.74 per share.

For the quarter, R&D spending increased 6 percent to $176.5 million from $165.8 million in the first quarter of 2015. The firm's SG&A spending increased 8 percent to $991.9 million from $916 million a year ago.

The firm finished the quarter with $826.8 million in cash and cash equivalents.

Thermo Fisher raised its full-year 2016 revenue guidance to between $17.86 billion and $18.04 billion, compared to the $17.36 billion to $17.56 billion range announced in January. It also raised its full-year adjusted EPS guidance to between $8.05 and $8.19, compared to between $7.80 and $7.96. The firm said the changes reflect the Affymetrix acquisition, a more favorable foreign exchange environment, and additional stock buybacks.

In morning trading on the New York Stock Exchange, shares of Thermo Fisher were down just over 1 percent at $145.33.