Thermo Fisher Scientific posts earnings that blow past forecasts amid ongoing demand for its Covid-19 testing equipment and services.
Thermo Fisher Scientific (TMO) – Get Report on Tuesday posted earnings and sales that blew past analysts’ expectations as the coronavirus pandemic, testing and search for a vaccine continued to drive demand for its lab equipment and services.
The Waltham, Mass.-based company posted adjusted third-quarter earnings of $2.25 billion, or $5.63 a share, vs. $1.19 billion, or $2.94 a share, in the comparable year-ago period. Analysts polled by FactSet had been expecting earnings of $4.33 a share.
Revenue jumped 36% to $8.52 billion, above the $6.27 billion it brought in a year ago and well above analysts’ forecasts of $7.6 billion. Adjusted operating income grew 97%, while adjusted operating margin increased to 32.9% from 22.7%.
Demand for Covid-related testing and other lab equipment that helps automate Covid-19 testing continued to boost Thermo Fisher’s profits during the quarter, CEO Marc Casper said in a statement accompanying the company’s earnings.
At the same time, “we’re adding new capabilities, including scaling up production of sample collection products and essential laboratory supplies as well as increasing our pharma services capacity to support new therapies and vaccines,” Casper said, adding the company was on track to deliver a record year.
Thermo Fisher has been heavily involved in Covid-19 testing and processing. The company in March received emergency use authorization from the Food and Drug Administration to market its diagnostic test for the coronavirus.
It received funding in July from the Biomedical Advanced Research and Development Authority to help Thermo Fisher expand its manufacturing capacity for sterile injectables used used to fill a high volume of vaccine doses.
Barda is part of the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services.
Shares of Thermo Fisher were up 1.64% at $472.91.
Author: M. Corey Goldman
Source: The Street: Thermo Fisher Scientific Processes Third-Quarter Earnings Beat