Thermo Fisher's Challenges - Thermo Fisher has been experiencing a continuous decline in COVID testing-related demand, particularly impacting the Life Science Solutions and diagnostics businesses [2] - Selling, general and administrative expenses increased by 10.2% year-over-year in Q3 2024 [3] - The company faces intense competition from manufacturers and third-party distributors, requiring ongoing R&D to meet changing technology and customer demands [3] Growth Drivers for Thermo Fisher - The biosciences and bioproduction businesses have expanded capacity to meet global vaccine manufacturing needs [4] - Strong growth in electron microscopy business and research/safety market channels within academic/government and industrial/applied end markets [4] - Recent $3.1 billion acquisition of Olink Holdings enhances capabilities in the high-growth proteomics market, expected to deliver $125 million in adjusted operating income synergies by year five [5] - Expansion of bioproduction purification resin capacity in China and Singapore to support mRNA manufacturing and meet global biopharma demand [6] - Enhancement of regional capabilities in South Korea through customer-focused innovation centers for semiconductor and biopharma industries [6] Industry Comparison - Thermo Fisher's shares gained 2.1% in the past year, underperforming the industry's 5.4% growth [7] - Abbott (ABT) shares declined 0.7% with consistent 2024 EPS estimates of $4.67 and an average earnings surprise of 1.64% [10] - Haemonetics (HAE) shares dropped 4.4% against industry growth of 7.8%, with fiscal 2025 EPS estimates remaining at $4.59 and an average earnings surprise of 2.82% [11] - Phibro Animal Health (PAHC) shares surged 77.6% compared to industry growth of 7.8%, with fiscal 2025 EPS estimates increasing 1.9% to $1.62 and an average earnings surprise of 25.47% [12] Macroeconomic and Geopolitical Factors - International markets contribute significantly to revenues, but currency fluctuations could adversely impact reported revenues and profitability [13] - Geopolitical pressures, including Russia-Ukraine war and China-Taiwan tensions, have increased cybersecurity risks and disrupted global supply chains and labor markets [14] - Volatile financial markets and price/availability fluctuations of goods and services are putting pressure on profitability [14]

Thermo Fisher's (TMO) Bioproduction business prospects look promising. Strategic buyouts and partnerships are likely to drive the company’s growth. Yet, macroeconomic issues and currency fluctuations dampen growth. The stock carries a Zacks Rank #3 (Hold).Factors Driving TMO's SharesThermo Fisher’s business strategy primarily includes expansion through strategic acquisition of technologies and businesses that augment the company’s existing products and services. As a result of these acquisitions, Thermo Fis ...

I have already written two articles about Thermo Fisher (NYSE: TMO ), one of my favorite companies in the healthcare sector. I recommend you take a look at them if you want to fully understand my perspective on theI am an investor who relies on the fundamental aspects of companies. I enjoy being the owner of the world's best businesses with strong long-term projections. To achieve this, I conduct thorough research on the companies I invest in, placing significant importance on the sector, competitive advant ...

With talk about the sell-off of Thermo Fisher Scientific’s (TMO) shares by institutional investors and company insiders, market sentiment toward the company seems bearish. The stock has lost 12.7% in the past three months, and despite the company’s recent completion of a $1 billion share repurchase and several other positive developments, the recuperation might take a little time.In the past three months, the stock has underperformed the broader industry’s 2.9% drop and the medical sector’s 9.8% decline. Th ...

Thermo Fisher Scientific (TMO) has introduced the Gibco CTS Detachable Dynabeads CD4 and CTS Detachable Dynabeads CD8 (CTS Detachable Dynabeads). These latest products expand on the company’s CTS Detachable Dynabeads platform, which represents a new generation of cell therapy isolation and/or activation products that prioritize cell quality while creating greater workflow control.At the core, these products can help customers maximize the potential of their therapies to save more lives. Per TMO, the number ...

I think that Thermo Fisher (NYSE: TMO ) is a good investment opportunity. The company has grown 174% between 2017 and 2024 Q3 TTM. The strategy of acquiring different companies has been the main factor for such growth. In addition, the LifeDaniel Mellado is an economist from Carabobo University with a Master's Degree in Statistics from Simon Bolivar University, both obtained in Venezuela.Daniel worked analyzing the agricultural commodity market and the financial investment portfolio for an agribusiness grou ...

Investment Rating - The report initiates coverage on Thermo Fisher with a "Buy" rating and sets a target price of $670 [1][5][33]. Core Insights - Thermo Fisher is positioned as a global leader in the life sciences sector, benefiting from industry improvement trends and a comprehensive product and service portfolio [1][2]. - The company is expected to experience revenue growth of +0.4% in 2024, +5.6% in 2025, and +8.3% in 2026, with Non-GAAP net profit growth of -1.0%, +5.7%, and +10.4% respectively [1][2]. - The report highlights the anticipated recovery in biotech financing, driven by the Federal Reserve's shift to a rate-cutting environment, which is expected to boost customer demand [1][2]. Summary by Sections Company Overview - Thermo Fisher has the largest business scale and service range in the industry, providing integrated services from drug discovery to commercial production [1][2]. - The company’s bioproduction services offer a competitive edge in securing customer orders, while its CDMO business addresses clinical trial supply challenges [1][2]. Financial Strength - Thermo Fisher is an active consolidator in the life sciences sector, with management planning to allocate 60%-75% of capital for mergers and acquisitions [1][2]. - The company has consistently generated robust free cash flow, providing a solid financial foundation for future expansions [1][2]. Market Trends - The global life sciences market is projected to grow due to increasing demand for pharmaceuticals, drug production costs, and R&D expenditures [1][2]. - The report notes that downstream customers are expected to complete inventory destocking by 2024, which will normalize order patterns [1][2]. Financial Projections - The report provides detailed financial forecasts, including projected sales revenue of $43,033 million in 2024, with a growth trajectory leading to $49,234 million by 2026 [2][28]. - Adjusted net profit is forecasted to be $8,278 million in 2024, increasing to $9,662 million by 2026 [2][28].

Thermo Fisher (TMO) continues to gain from strategic buyouts. The company’s Bioproduction business looks promising. Yet, macroeconomic issues and currency fluctuations dampen growth. The stock carries a Zacks Rank #3 (Hold) at present.Factors Driving TMO's SharesWithin the pharma and biotech end market, of late, Thermo Fisher’s biosciences and bioproduction businesses have significantly expanded their capacity to meet the global vaccine manufacturing requirements. In terms of the newest update, despite the ...

Key Points Industry and Company Overview 1. **Industry Leader**: Thermo Fisher Scientific is a global leader in life science tools and diagnostics, often considered the industry's state of the state [4]. 2. **Market Conditions**: The industry experienced improving market conditions throughout the year, with businesses and end markets being predictable [6]. 3. **Share Gain Momentum**: Despite market volatility, Thermo Fisher has continued to gain market share and raise EPS consistently [6]. Election and Industry Impact 1. **Rebalancing of Portfolios**: The election and uncertainty around HHS policy led to a rebalancing of portfolios outside of the space [16]. 2. **Business-Friendly Administration**: A more business-friendly administration is expected to benefit the industry and Thermo Fisher's business [17]. 3. **NIH Exposure**: Thermo Fisher has a low exposure to NIH funding, with approximately 7-8% of revenue indirectly affected [24]. Pharma and Biotech 1. **Market Improvement**: Pharma and biotech markets are slowly improving, with activity picking up and pipelines strengthening [47]. 2. **Investment in R&D**: Thermo Fisher has continued to invest heavily in R&D, leading to the launch of innovative products like the Astral mass spectrometer [52]. 3. **Share Gain**: Thermo Fisher has gained share in the analytical instruments segment, particularly in areas like cryo EM and separation analysis [51]. M&A and Capital Deployment 1. **M&A Environment**: Thermo Fisher is optimistic about the M&A environment, with more unknowns creating opportunities for transactions [38]. 2. **Capital Deployment**: Thermo Fisher has a long-standing capital deployment strategy, with approximately 1/3 of deployed capital allocated to share buybacks and dividends [43]. 3. **Recent Buyback**: Thermo Fisher authorized a $4 billion share buyback in September 2024 [43]. 2025 Outlook 1. **Pandemic-Related Activity**: The headwind of pandemic-related activity will be significantly reduced in 2025 [64]. 2. **Share Gain Momentum**: Thermo Fisher expects to maintain strong share gain momentum in 2025, driven by new contracts and a better track record of navigating volatility [68]. 3. **Long-Term Misconceptions**: The biggest misconception is that Thermo Fisher cannot consistently grow share, despite its clear strategy and strong earnings growth [70].

Thermo Fisher Scientific Inc. (NYSE:TMO) Wolfe 2024 Healthcare Results Conference November 19, 2024 8:00 AM ET Company Participants Marc Casper - Chairman, President and Chief Executive Officer Conference Call Participants Doug Schenkel - Wolfe Research Doug Schenkel All right. Good morning, everybody. I'm Doug Schenkel. I lead the Life Science Tools and Diagnostics Group here at Wolfe Research. It's my pleasure to welcome all of you to the sixth annual Wolfe Annual Healthcare Conference, my first conferenc ...