Jefferies Comments on "Encouraging" Thermo Fisher Outlook

Thermo Fisher Scientific, Inc.'s TMO initial 2012 core operating outlook and longer-term base operating model parameters “remain largely consistent with goals communicated in prior forums historically,” Jefferies reports. “Specifically, TMO's initial 2012 financial outlook contemplates 5% organic revenue growth, EBITA margin expansion of 50bps to 100bps, and adjusted EPS growth of 13% to 15% from the mid-point ($4.10) of its formal 2011 outlook,” Jefferies writes. “Combined with a refreshing commitment to utilize ~50% of FCF for share repurchase activities and factoring ~$0.28 (at the mid-point) for the pending Phadia deal, such a view implies 2012 EPS of ~$4.95 (at the mid-point), which compares favorably to our prior and the consensus views.” Thermo Fisher Scientific closed Thursday at $65.31.