Thermo Fisher Scientific(TMO)2024-07-24 10:03Revenue Performance - Second quarter revenue declined 1% to $10.54 billion in 2024, compared to $10.69 billion in 2023[5] - Revenues for the three months ended June 29, 2024, were $10,541 million, a slight decrease from $10,687 million in the same period last year[21] - Revenues for the six months ended July 1, 2023, were $21.397 billion, representing a decrease from $20.886 billion in the same period in 2024[23] - Life Sciences Solutions segment revenue decreased to $2,355 million (22.3% of total revenue) in Q2 2024 from $2,463 million (23.0% of total revenue) in Q2 2023[38] - Laboratory Products and Biopharma Services segment revenue was $5,758 million (54.6% of total revenue) in Q2 2024, down from $5,831 million (54.6% of total revenue) in Q2 2023[38] Earnings and Profitability - GAAP diluted EPS increased 15% to $4.04 in Q2 2024, compared to $3.51 in Q2 2023[16] - Adjusted EPS increased 4% to $5.37 in Q2 2024[13] - GAAP operating income grew to $1.82 billion in Q2 2024, compared to $1.58 billion in Q2 2023[16] - GAAP operating margin increased to 17.3% in Q2 2024, compared to 14.8% in Q2 2023[16] - Net income attributable to Thermo Fisher Scientific Inc. rose to $1,548 million (14.7% of revenues) from $1,361 million (12.7% of revenues)[21] - Adjusted operating income (non-GAAP) was $2,347 million (22.3% of revenues), compared to $2,370 million (22.2% of revenues) in the prior year[21] - Adjusted EPS (non-GAAP) increased to $5.37 from $5.15 year-over-year[21] - Adjusted EPS in Q2 2024 increased 4% to $5.37 compared to $5.15 in Q2 2023[33] - Adjusted operating income for Q2 2024 was $2.35 billion, slightly down from $2.37 billion in Q2 2023[33] - Adjusted operating margin improved to 22.3% in Q2 2024 from 22.2% in Q2 2023[33] - Net income attributable to Thermo Fisher Scientific Inc. for the six months ended July 1, 2023, was $2.650 billion, compared to $2.875 billion in 2024[23] - Adjusted operating income (non-GAAP measure) for the six months ended July 1, 2023, was $4.700 billion, slightly higher than $4.625 billion in 2024[23] - Adjusted EPS (non-GAAP measure) for the six months ended July 1, 2023, was $10.18, compared to $10.47 in 2024[23] Guidance and Forecast - Thermo Fisher raised its full-year revenue guidance to a new range of $42.4 to $43.3 billion[6] - Adjusted EPS guidance for the full year was raised to a new range of $21.29 to $22.07[6] Acquisitions and Product Launches - The company completed the acquisition of Olink, a provider of next-generation proteomic solutions[4] - Thermo Fisher launched several new products, including the Thermo Scientific™ Stellar™ mass spectrometer and ENERGY STAR-certified ULT Freezers[3] Geographic Expansion - The company expanded its presence in Indonesia to support healthcare, scientific research, and renewable energy investments[14] Cash Flow and Financial Position - Free cash flow (non-GAAP) improved to $1,674 million from $1,260 million in the same period last year[21] - Free cash flow (non-GAAP measure) for the six months ended July 1, 2023, was $1.537 billion, lower than $2.583 billion in 2024[23] - Free cash flow (non-GAAP measure) increased to $2,583 million from $1,537 million[27] - Net cash provided by operating activities for the six months ended June 29, 2024, was $3,211 million, up from $2,269 million in the same period of 2023[43] - Cash, cash equivalents, and restricted cash decreased to $7,097 million at the end of June 2024 from $8,097 million at the beginning of the period[43] Costs and Expenses - Cost of revenues decreased to 57.9% of revenues from 59.2% in the prior year[21] - Research and development expenses remained stable at 3.2% of revenues[21] - Consolidated depreciation expense for 2024 was $562 million, compared to $523 million in 2023[25] - Adjusted results in 2024 and 2023 exclude charges for inventory write-downs and accelerated depreciation on manufacturing assets[24] - Adjusted results in 2024 and 2023 exclude restructuring and other costs, including severance and impairments of long-lived assets[24] Non-GAAP Measures - The company excludes acquisition-related costs and restructuring expenses from non-GAAP measures as they are not indicative of normal operating costs[44][45] - Free cash flow is reported as operating cash flow excluding net capital expenditures, indicating the company's ability to generate cash for acquisitions and other activities[46] - Non-GAAP financial measures are not considered superior to GAAP measures, with reconciliations provided in the press release[47] COVID-19 Impact - COVID-19 testing revenue declined by 1% year-over-year[22] Organic Growth - Organic revenue growth (non-GAAP) was -1%, with core organic revenue growth (non-GAAP) at 0% for the three months ended June 29, 2024[22] Balance Sheet - Total current assets as of June 29, 2024, were $25.476 billion, up from $24.589 billion as of December 31, 2023[26] - Total liabilities, redeemable noncontrolling interest, and equity as of June 29, 2024, were $98.496 billion, slightly down from $98.726 billion as of December 31, 2023[26] Company Outlook - The company has made significant progress and is well-positioned for differentiated performance in 2024[49]