NEW YORK (GenomeWeb News) – Thermo Fisher Scientific today reported a 9-percent increase in second-quarter revenues, including a 28-percent jump in revenues generated by its Specialty Diagnostics segment.
For the period ended June 30, total revenues came in at $3.11 billion, up from $2.85 billion a year ago. Wall Street had a consensus estimate of $3.05 billion.
Specialty Diagnostic saw the biggest year-over-year spike as revenues for the segment grew to $732 million from $571 million a year ago. Analytical Technologies rose 8 percent to $1.00 billion from $929 million, and Laboratory Products and Services, the largest of Thermo Fisher's three segments, increased revenues 2 percent to $1.52 billion from $1.48 billion.
The company increased its R&D spending to $94.2 million in the second quarter, up 13 percent from $83.2 million a year ago, and upped SG&A spending 7 percent to $705.2 million from $661.3 million.
For the quarter Thermo Fisher recorded a profit of $233.8 million, or $.63 per share, compared to $523.4 million, or $1.36 per share, a year ago. Adjusted EPS of $1.22 beat consensus analyst estimates of $1.16.
During the quarter, the company said that it was purchasing Doe & Ingalls for about $175 million in cash, and One Lambda for $925 million in cash. It also spent $100 million to repurchase 2 million shares of its stock, and announced a new $500 million share buyback program for the year.
In a conference call following the release of Thermo Fisher's earnings, President and CEO Marc Casper called the One Lambda acquisition "an excellent addition to our specialty diagnostics portfolio because it will enhance our leadership with strong technologies that generate high margins and create opportunities for long-term growth."
Commenting on the academic and government end markets, Casper also said that not much has changed. "Consumables broadly did fine," he said, and "instrumentation really was more aligned with how differentiated the technologies were. … In particular, our mass spec business really had a very nice quarter."
The academic and government markets "are consistent with what we've been seeing so far this year. They're still down low single digits as we expected, so our outlook here hasn't changed," Casper said. "As we said last quarter, our customers remain active in their research efforts, and laboratory consumable spending has been steady, despite the capital equipment side being somewhat strained."
Thermo Fisher ended the quarter with $732.3 million in cash and cash equivalents.
It revised its guidance for full-year 2012 to reflect the Laboratory Workstations business as a discontinued operation, the buy of Doe & Ingalls and more unfavorable foreign exchange. Revenues for the year are expected to be in the range of $12.14 billion to $12.26 billion, which would represent growth of 5 percent to 6 percent from a year ago.
During the first-quarter earnings release, Thermo Fisher had guided to between $12.27 billion and $12.43 billion in revenues.
Full-year EPS guidance was raised to a range of between $4.74 and $4.84 from a previous range of $4.71 and $4.83.
The guidance does not include the pending acquisitions of One Lambda.
Shares of Thermo Fisher were up 8 percent to $53.51 in late-morning trading today on the New York Stock Exchange