Goldman On Thermo Fisher's Strong 4Q

Goldman Sachs has published a research report on Thermo Fisher Scientific, Inc. TMO after the company reported a better than expected 4Q. In the report, Goldman writes "TMO reported better than expected 4Q2010 EPS of $1.00 vs. our $0.96 estimate and Street $0.95 driven by stronger gross margins (43.2% vs. our/Street 42.2%) on in-line revenues ($2.78 bn vs. our $2.81 bn estimate and Street $2.80 bn). Analytical Technologies revenue of $1.24 bn was in line with our $1.24 bn estimate and slightly above the Street's $1.22 bn, while Lab Products and Services revenue of $1.67 bn was slightly below our $1.71 bn estimate and Street $1.70 bn. TMO provided FY2011 guidance of $11.33-11.45 bn and $4.00-4.10 EPS vs. our pre-4Q revenue/EPS of $11.37 bn/$3.95 and Reuters consensus $11.40 bn/$4.00. 2011 guidance (and our estimates) does not include the impact of the pending acquisition of DNEX, which management has previously stated will be $0.13-0.15 accretive." Goldman maintains its Neutral rating on Thermo Fisher Scientific, which closed yesterday at $57.41.