Thermo Fisher Below Street Expectation, Lowers Annual Guidance Citing 'Macroeconomic Environment'

Thermo Fisher Scientific Inc (NYSE: TMO) has posted Q2 revenue of $10.69 billion, down 3% Y/Y, missing the consensus of $10.98 billion.

Organic revenue was 3% lower, Core organic revenue growth was 2%, and COVID-19 testing revenue was $0.08 billion.

Revenue from Life Sciences Solutions Segment declined by 25.2% to $2.46 billion. Analytical Instruments Segment sales were up 8.8% to $1.75 billion. 

Also Read: Credit Suisse Upgrades Thermo Fisher, Calls It Best-Of-Breed Asset.

Specialty Diagnostics Segment revenues were almost flat at $1.1 billion, and Laboratory Products and Biopharma Services segment sales were up 5.3% to $5.83 billion.

Adjusted EPS of $5.15 versus $5.51 a year ago, below the consensus of $5.42. Adjusted operating margin contracted to 22.2% from 23.7%.

Earlier this month, Thermo Fisher agreed to acquire CorEvitas LLC from Audax Private Equity for $912.5 million in cash.

Guidance: Thermo Fisher is revising revenue and adjusted EPS guidance for FY23, given the macroeconomic environment. 

The company now expects 2023 revenue to be $43.4 billion-$44.0 billion, compared to the consensus of $45.21 billion and earlier guidance of $45.3 billion.

The company expects core organic revenue growth of 2%-4%, down from prior guidance of 7% growth.

TMO sees FY23 adjusted EPS of $22.28-$22.72, down from the previous expectation of $23.70.

Price Action: TMO shares are down 2.79% at $555.00 during the premarket session on the last check Wednesday.