Core Viewpoint - The medical device industry is facing complex challenges due to escalating trade tariffs, but local companies are increasingly filling the gaps left by imported products, particularly in high-end medical devices [1][3][10]. Group 1: Impact of Tariffs on Medical Device Companies - Major US medical device companies, including Boston Scientific and Edwards Lifesciences, have reported significant financial impacts from tariffs, estimating losses in the hundreds of millions of dollars [3][4]. - Boston Scientific anticipates a $200 million loss due to tariffs but expects strong demand for cardiovascular devices to mitigate this impact [3]. - Johnson & Johnson predicts a $400 million impact on its medical technology profits due to tariffs, while Abbott also expects a multi-million dollar effect [3][4]. Group 2: Localization Efforts by Multinational Companies - Multinational medical device companies are increasing local investments in China to adapt to tariff impacts and meet domestic market demands [7][8]. - Boston Scientific has partnered with local manufacturer Xianruida Medical to enhance product localization and reduce production costs [8]. - Medtronic has invested approximately 300 million yuan in Shanghai for the development of cardiac disease-related products, aiming for production within five years [8]. Group 3: Rise of Domestic Medical Device Manufacturers - Domestic medical device companies are rapidly advancing, with many now offering localized alternatives to previously imported products, such as antibacterial sutures [10][11]. - The average price of domestic high-value medical devices is approximately 30% lower than that of imported products, while quality has reached competitive levels [11][12]. - The approval of innovative domestic medical technologies, such as transcatheter tricuspid valve ring systems, indicates significant progress in filling market gaps [11][12]. Group 4: Future Directions and Challenges - The dual pressures of tariff impacts and centralized procurement policies are pushing domestic companies to innovate and explore high-end medical device markets [12][13]. - Companies are encouraged to localize their supply chains and reduce reliance on imported materials to maintain cost advantages [13]. - The industry is witnessing a shift towards high-end products, with significant opportunities in areas like cardiac electrophysiology and advanced imaging equipment [12][13].

Investment Rating - The report maintains a "BUY" rating for Thermo Fisher, indicating a potential return of over 15% over the next 12 months [15]. Core Insights - Thermo Fisher reported a revenue increase of 0.2% year-over-year to US$10.4 billion in 1Q25, with adjusted EPS rising 0.8% year-over-year to US$5.15, both exceeding Bloomberg consensus estimates [1]. - The company has revised its full-year revenue guidance to project growth between 1.0% and 3.1% for 2025, while adjusting its EPS guidance downward, expecting a range from a 0.6% decline to 4.4% growth due to macroeconomic factors [1][7]. - Management anticipates a US$500 million reduction in revenue guidance due to US policy changes affecting equipment sales, alongside a projected US$400 million revenue reduction from elevated tariffs between the US and China [7]. Financial Summary - For FY25E, revenue is estimated at US$43.806 billion, reflecting a 2.2% year-over-year growth, with adjusted net profit expected to be US$8.461 billion, a 2.5% increase [2][12]. - The adjusted EPS for FY25E is projected at US$22.42, with a P/E ratio of 19.3x [2][12]. - The company plans to invest US$2 billion over the next four years to expand its US manufacturing and R&D facilities, aiming to support long-term growth and market share expansion [7]. Valuation - The target price for Thermo Fisher has been revised down from US$690.00 to US$526.00, representing a 21.9% upside from the current price of US$431.64 [3]. - The DCF valuation indicates a total present value of US$226 billion, with an equity value of US$198.5 billion, leading to a price per share of US$526.00 [10].

特别提示 微信公众号机制调整，请点击顶部"仪器信息网" → 右上方"…" → 设为 ★ 星标，否则很可能无法看到我们的推送。 专业诊断部门 的收入为11 . 4 8亿美元，与2 0 2 4年第一季度相比略涨0 . 3 9亿美元。 | Business Segment Information | | Three months ended | | | | --- | --- | --- | --- | --- | | | March 29, | % of | March 30, | % of | | (Dollars in millions) | 2025 | Revenues | 2024 | Revenues | | Revenues | | | | | | Life Sciences Solutions | 2,341 | 22.6% S | 2,285 | 22.1% | | Analytical Instruments | 1,718 | 16.6% | 1,687 | 16.3% | | Specialty Diagnostics | 1,148 | 11.1% | 1,109 | 10.7% | | ...

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Core Insights - Thermo Fisher Scientific Inc. reported first-quarter 2025 adjusted earnings per share (EPS) of $5.15, exceeding the Zacks Consensus Estimate by 1% and reflecting a year-over-year increase of 0.8% [1] - The company's GAAP EPS was $3.98, marking a 15% increase year over year [1] - Following the earnings announcement, shares of Thermo Fisher rose 1.7% in pre-market trading [2] Revenue Performance - Total revenues for the quarter reached $10.36 billion, a 0.2% increase year over year, surpassing the Zacks Consensus Estimate by 1.1% [3] - Organic revenues increased by 1% year over year [3] Segment Analysis - Life Sciences Solutions segment (22.6% of total revenues) saw revenues increase by 2.4% year over year to $2.34 billion, exceeding estimates [4] - Analytical Instruments segment (16.6%) reported a 1.8% year-over-year increase in revenues to $1.72 billion, which fell short of estimates [5] - Specialty Diagnostics segment (11.1%) experienced a 3.5% year-over-year revenue increase to $1.15 billion, surpassing predictions [6] - Laboratory Products and Biopharma Services segment (54.4%) saw a decline of 1.4% year over year, with revenues at $5.64 billion, slightly below estimates [7] Margin Performance - Gross margin for the first quarter was 41.6%, contracting by 5 basis points year over year due to a 0.3% rise in the cost of revenues [8] - Selling, general and administrative expenses decreased by 0.6% to $1.72 billion, while research and development expenses increased by 3.3% to $342 million [8] - Adjusted operating margin was 21.7%, reflecting a contraction of 2 basis points [8] Financial Position - At the end of Q1 2025, cash and cash equivalents and short-term investments totaled $5.95 billion, up from $5.57 billion at the end of Q4 2024 [9] - Net cash from operating activities was $723 million, down from $1.25 billion a year ago [10] - The company has a consistent dividend-paying history, with a five-year annualized dividend growth of 15.10% [10] Strategic Developments - During the first quarter, Thermo Fisher launched several innovative products, including the Thermo Scientific Vulcan Automated Lab and Olink Reveal proteomics kits, contributing to commercial success [12] - The company announced an agreement to acquire Solventum's Purification & Filtration Business for $4.1 billion in cash [12] Overall Assessment - Thermo Fisher's first-quarter results exceeded expectations in terms of earnings and revenues, with growth in most segments except for Laboratory Products and Biopharma Services [11] - The contraction in margins was noted as a concern, and the company is expected to provide guidance for 2025 in an upcoming earnings call [11]

Core Viewpoint - Thermo Fisher Scientific Inc. reported strong first-quarter 2025 results, with adjusted earnings per share of $5.15, surpassing analyst expectations of $5.10, and quarterly sales of $10.36 billion, slightly above the consensus estimate of $10.23 billion [1][2] Financial Performance - Adjusted operating income for Q1 2025 was $2.27 billion, a slight decrease from $2.28 billion in the same quarter last year [3] - Adjusted operating margin was 21.9%, down from 22% in Q1 2024 [3] - Organic revenue growth was recorded at 1% [1] Segment Performance - Life Sciences Solutions Segment revenue increased by 2.5% year over year to $2.34 billion [3] - Analytical Instruments Segment sales rose by 1.8% to $1.72 billion [3] - Specialty Diagnostics Segment revenues grew by 3.5% to $1.15 billion [4] - Laboratory Products and Biopharma Services segment sales decreased by 1.5% to $5.64 billion [4] Strategic Developments - The company announced an agreement to acquire Solventum's SOLV Purification & Filtration business for approximately $4.1 billion in cash, which focuses on purification and filtration technologies for biologics and medical technologies [4] Market Reaction - Following the earnings report, Thermo Fisher's stock price increased by 4.23%, reaching $453.10 [5]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $10.36 billion, with adjusted operating income of $2.27 billion and an adjusted operating margin of 21.9% [10][11] - Adjusted EPS grew by 1% to $5.15 per share, while GAAP EPS increased by 15% to $3.98 [36] - Organic revenue growth was approximately $100 million or 1% ahead of expectations, with reported revenue flat year over year [35][37] Performance by Business Lines - Life Science Solutions reported a 2% increase in revenue, driven by bioproduction, but adjusted operating income decreased by 1% [43][44] - Analytical Instruments saw a 2% revenue growth, led by electron microscopy, with adjusted operating income flat year over year [45][46] - Specialty Diagnostics grew by 3% in revenue, with adjusted operating income increasing by 3% [46][47] - Laboratory Products and Biopharma Services experienced a 1% decrease in both reported and organic revenue, primarily due to the runoff of pandemic-related revenue [48] Market Data and Key Metrics Changes - North America revenue was flat year over year, while Europe and Asia Pacific grew low single digits, with China declining mid-single digits [38] - Academic and government revenue declined low single digits due to macro conditions in the U.S. and China [12][13] Company Strategy and Development Direction - The company’s growth strategy focuses on high-impact innovation, trusted partner status with customers, and a strong commercial engine [14][18] - Recent product launches include the Thermo Scientific Vulcan automated lab and the next-generation Thermo Scientific Transcend platform, enhancing market leadership [15][17] - The company is actively managing its supply chain to mitigate tariff impacts and is investing $2 billion in U.S. manufacturing and R&D [31][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more uncertain macro environment but emphasized strong execution and customer success [8][9] - Updated guidance for 2025 includes revenue expectations of $43.3 billion to $44.2 billion and adjusted EPS in the range of $21.76 to $22.84 [26][61] - Management remains optimistic about long-term growth despite current challenges, citing strong demand for healthcare and scientific breakthroughs [87][89] Other Important Information - The company repurchased $1 billion of shares and increased its dividend by 10% during the quarter [24] - The acquisition of SOVENTUM's purification and filtration business for $4.1 billion is expected to close by the end of 2025 [22][23] Q&A Session Summary Question: Guidance methodology in light of market uncertainty - Management acknowledged the dynamic nature of the macro environment and emphasized their agility in navigating risks and capitalizing on opportunities [72][76] Question: Long-term growth outlook for the tools market - Management expressed optimism about long-term growth driven by healthcare demand and scientific advancements, despite potential short-term challenges [84][87] Question: Changes in order behavior due to tariffs - Management noted that there has not been a significant pull forward in orders due to the short notice of tariff announcements [93][94] Question: Flexibility in manufacturing - Management highlighted the company's robust manufacturing capabilities and flexibility across different product types, which positions them well to adapt to changes [96][101] Question: Impact of pharmacy tariffs - Management indicated ongoing discussions with pharmaceutical customers regarding tariffs and emphasized the importance of U.S. manufacturing capabilities [105][106] Question: Breakdown of policy-related guidance reduction - Management clarified that $200 million of the guidance reduction was due to canceled vaccine-related studies, with the remainder reflecting softer academic and government spending [114][115] Question: Pricing assumptions in light of tariffs - Management stated that they are implementing appropriate pricing actions to mitigate tariff impacts, expecting a slight increase in pricing across the portfolio [120][121]

Core Insights - Thermo Fisher Scientific reported revenue of $10.36 billion for the quarter ended March 2025, reflecting a year-over-year increase of 0.2% and an EPS of $5.15, up from $5.11 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $10.25 billion by 1.11%, while the EPS surpassed the consensus estimate of $5.10 by 0.98% [1] Revenue Performance - Organic revenue growth was 1%, compared to the average estimate of 0.2% from five analysts [4] - Life Sciences Solutions revenue was $2.34 billion, exceeding the estimated $2.28 billion, representing a year-over-year increase of 2.5% [4] - Analytical Instruments revenue was $1.72 billion, slightly below the estimated $1.73 billion, with a year-over-year increase of 1.8% [4] - Laboratory Products and Biopharma Services revenue was $5.64 billion, slightly above the estimated $5.61 billion, but showed a year-over-year decline of 1.5% [4] - Specialty Diagnostics revenue was $1.15 billion, surpassing the estimated $1.10 billion, with a year-over-year increase of 3.5% [4] - Revenues from Eliminations were reported at -$482 million, worse than the average estimate of -$449.31 million, but showed a year-over-year improvement of 4.8% [4] Stock Performance - Thermo Fisher's shares have returned -15.5% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Thermo Fisher Scientific reported quarterly earnings of $5.15 per share, exceeding the Zacks Consensus Estimate of $5.10 per share, and showing a slight increase from $5.11 per share a year ago [1] - The company achieved revenues of $10.36 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.11%, and showing a marginal increase from $10.35 billion year-over-year [3] - Over the last four quarters, Thermo Fisher has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2][3] Market Outlook - The stock has underperformed, losing approximately 16.4% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $5.56, with expected revenues of $10.78 billion, and for the current fiscal year, the EPS estimate is $23.17 on revenues of $43.82 billion [8] Industry Context - The Medical - Instruments industry, to which Thermo Fisher belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [6]

Exhibit 99.1 • First quarter revenue was $10.36 billion. • First quarter GAAP diluted earnings per share (EPS) grew 15% to $3.98. • First quarter adjusted EPS grew 1% to $5.15. • Delivered very strong financial performance in the quarter, demonstrating the strength of our trusted partner status and the power of our PPI Business System in a more uncertain macroeconomic environment. • Advanced our proven growth strategy, launching a range of high-impact, innovative new products during the quarter. To transfor ...