Macroeconomic Woes, Competition Weigh on TMO's Stock Performance

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$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]