What You Need To Know
Thermo Fisher Scientific (NYSE: TMO) recently announced its fourth-quarter adjusted earnings, reporting $6.10 per diluted share, a notable increase from $5.67 in the previous year and surpassing analyst expectations of $5.94. The company also achieved a quarterly revenue of $11.40 billion, up from $10.89 billion year-over-year, which exceeded the anticipated $11.28 billion by analysts. Following this strong performance, Thermo Fisher's stock ascended by 6.6%.
Key growth was driven by the analytical instruments division with the introduction of new products, including the iCAP MX Series ICP-MS and Gibco CTS Detachable Dynabeads. The company maintained consistent full-year revenue of $42.88 billion. Additionally, Thermo Fisher completed the acquisition of Olink and returned $4.6 billion to shareholders.
Looking ahead, the company projects 2025 adjusted earnings per share between $23.10 and $23.50, which is above market forecasts. Thermo Fisher's CEO, Marc Casper, expects future growth to be fueled by market share expansion and strategic partnerships, although the company currently holds $29.06 billion in long-term obligations.
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Why This Is Important for Retail Investors
Earnings Growth: Thermo Fisher's increase in adjusted earnings per share demonstrates strong financial performance, signaling potential stability and profitability for investors.
Revenue Exceeding Expectations: The company’s ability to surpass revenue forecasts indicates robust demand for its products, which may lead to future growth opportunities.
Strategic Acquisitions: The acquisition of Olink reflects Thermo Fisher’s commitment to enhancing its market position, offering investors a sign of expanding business operations.
Shareholder Returns: The significant return of $4.6 billion to shareholders highlights the company’s dedication to enhancing shareholder value, which can attract income-focused investors.
Positive Market Outlook: Projections for future earnings growth, along with anticipated market share gains, suggest a favorable long-term investment prospect for retail investors.
Relevant ETFs
Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some relevant ETFs include the following:
SPDR S&P Biotech ETF
iShares Nasdaq Biotechnology ETF
Invesco S&P 500 Equal Weight Health Care ETF
Vanguard Health Care ETF
iShares U.S. Medical Devices ETF
ARK Genomic Revolution ETF