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With a market cap of $205.5 billion, Thermo Fisher Scientific Inc. (TMO) is a global leader in serving science, providing a broad range of products and services across life sciences, analytical instruments, specialty diagnostics, and laboratory products. Based in Waltham, Massachusetts, it operates internationally, offering solutions for pharmaceutical, biotechnology, healthcare, and research markets. TMO is set to unveil its fiscal Q4 earnings results before the market opens on Thursday, Jan. 30.
Ahead of this event, analysts expect the scientific instrument and laboratory supplies maker to report a profit of $5.92 per share, up 4.4% from $5.67 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, TMO exceeded the consensus EPS estimate by a slight margin.
For fiscal 2024, analysts expect TMO to report EPS of $21.68, up marginally from $21.55 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 7.3% year-over-year to $23.26.
TMO has underperformed the broader markets over the past 52 weeks, with shares up 3.1%, compared to the S&P 500 Index's ($SPX) 26.6% gain. But, the stock has outpaced the Health Care Select Sector SPDR Fund's (XLV) over 1% return over the same period.
Shares of Thermo Fisher Scientific fell 1.7% on Oct. 23, primarily due to the mixed Q3 earnings report. Although adjusted EPS of $5.28 exceeded the consensus estimate, it declined 7.2% year-over-year. Quarterly revenue of $10.6 billion missed the consensus estimate, with both organic and core organic revenues flat year over year. Investors were cautious due to margin contraction and increased operating expenses, dampening sentiment despite the company raising its full-year adjusted EPS guidance to $21.35 - $22.07.
However, analysts' consensus rating on TMO stock is bullish, with a "Strong Buy" rating overall. Out of 25 analysts covering the stock, opinions include 17 "Strong Buys,” three "Moderate Buys," and five "Holds.” This configuration is slightly more bullish than three months ago, with 16 analysts suggesting a "Strong Buy."
The average analyst price target for TMO is $649, suggesting a potential upside of nearly 19% from current levels.
