Core Viewpoint - Analysts project that Thermo Fisher Scientific (TMO) will report quarterly earnings of $5.10 per share, reflecting a 0.2% decline year over year, with revenues expected to reach $10.25 billion, down 0.9% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating a reassessment by covering analysts [1][2]. - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [2]. Revenue Projections - Analysts forecast 'Revenues- Laboratory Products and Biopharma Services' to reach $5.61 billion, indicating a decline of 2.1% from the prior-year quarter [4]. - 'Revenues- Specialty Diagnostics' is expected to be $1.10 billion, reflecting a decrease of 0.5% year over year [4]. - 'Revenues- Life Sciences Solutions' is projected at $2.28 billion, showing a year-over-year change of -0.3% [4]. Geographic Revenue Estimates - 'Revenues- Analytical Instruments' is expected to reach $1.73 billion, suggesting a year-over-year increase of 2.5% [5]. - 'Geographic Revenues- Customer Location- North America' is projected at $5.43 billion, indicating a decline of 1.7% year over year [5]. - 'Geographic Revenues- Customer Location- Asia-Pacific' is estimated at $1.88 billion, reflecting a growth of 0.8% [5]. - 'Geographic Revenues- Customer Location- Other regions' is expected to reach $368.42 million, indicating a year-over-year increase of 6.5% [6]. - 'Geographic Revenues- Customer Location- Europe' is projected at $2.60 billion, reflecting a decrease of 0.7% from the year-ago quarter [6]. Stock Performance - Shares of Thermo Fisher have shown a return of -15.7% over the past month, compared to a -6.3% change in the Zacks S&P 500 composite [6].

Investment Rating - The report maintains an Equal-weight (EW) stance on MSCI China within the global EM/APXJ framework [9]. Core Insights - The report anticipates higher near-term market volatility due to the US imposing additional tariffs on China, raising the total tariff rate to up to 65% [2][4]. - The A-share market is viewed as better positioned for hedging and diversification compared to the offshore market, as A-share investors are less sensitive to tariff changes [3]. - The direct impact on earnings from the tariffs is expected to be smaller than the overall drag on macroeconomic growth, with the MSCI China universe generating only 13% of its total revenue from markets outside China, and less than 3% from the US [7]. Summary by Sections Market Volatility - The report highlights that the recent tariff hikes could lead to elevated market volatility as the market adjusts to the potential economic impacts [2][4]. A-Share Market Positioning - The A-share market is recommended for investors seeking stability, as it has shown lower correlation with global markets and less volatility compared to offshore markets [3]. Earnings Impact - The report suggests that the overall drag on equity market earnings will be less severe than the impact on macro growth, primarily due to the limited revenue exposure of listed Chinese companies to the US market [7]. Companies with High US Revenue Exposure - A list of 30 companies with the highest revenue exposure to the US market is provided, indicating potential negative impacts on these companies in the near term [8]. Key Indicators to Monitor - The report advises monitoring the USDCNY exchange rate, signs of US-China negotiations, and any significant policy easing measures to stabilize domestic growth [9].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $8.2 million, a decrease of 24% compared to Q4 2023, which included $2 million from discontinued clinical services [9] - GAAP gross margin for Q4 2024 was 42%, significantly higher than the 23% reported in Q4 2023 [9] - Non-GAAP gross margin for Q4 2024 was also 42%, compared to 24% in Q4 2023 [9] - GAAP operating expense for Q4 2024 was $15.4 million, down from $27.4 million in Q4 2023 [9][10] - Cash, cash equivalents, and available-for-sale securities as of December 31, 2024, were $20.9 million, with $11.4 million subject to restrictions [11] - Full year 2024 GAAP operating expense was $104.4 million, while non-GAAP operating expense was $68.9 million [13] Business Line Data and Key Metrics Changes - Product revenues for the full year were $27 million, a 1% increase from $26.7 million in 2023, despite a nearly $2 million reduction in instrument sales [12] - Consumables sales were $12.8 million, a 14% increase from $11.2 million in 2023 [12] - Software sales for the full year were $6.2 million, an 11% increase from $5.6 million in 2023 [12] Market Data and Key Metrics Changes - Sales in the Americas region were up 9% in 2024, while sales in the Europe, Middle East, and Africa region were up 10% compared to 2023 [13] - A total of 30,307 nanochannel array flow cells were sold during 2024, including 8,058 in Q4, representing a 15% increase over the 26,444 sold in 2023 [13] Company Strategy and Development Direction - The company is focusing on a recalibration period in the life sciences and tools industry, emphasizing the importance of optical genome mapping (OGM) [15] - A shift in go-to-market strategy was implemented in September 2024, focusing on conserving cash and supporting existing customers rather than aggressively acquiring new ones [16] - The strategy includes four key pillars: supporting the installed base, driving utilization through software adoption, building reimbursement support, and improving profitability [17] Management's Comments on Operating Environment and Future Outlook - Management expects full year revenues for 2025 to be in the range of $29 to $32 million, with Q1 2025 revenues expected to be between $6.2 million and $6.3 million [24] - The company anticipates ongoing volatility in margins but is encouraged by recent improvements [23] - The routine use customer group, which accounts for over 80% of consumables purchases, is expected to grow and drive revenue growth [18] Other Important Information - The company raised net proceeds of $3.6 million from ATM sales during Q4 2024 and completed a $10 million registered direct offering in January 2025 [11] - The American Medical Association established a Category 1 CPT code for OGM use in hematologic malignancies, effective January 1, 2025 [22] Q&A Session Summary Question: Guidance on core revenue growth for 2025 - Management indicated that the guidance for 2025 implies core revenue growth, with expectations of $29 to $32 million [29] Question: Customer acquisition strategy - Management stated that while they are not aggressively seeking new customers, they will focus on acquiring new customers that fit into the routine use group [42][43] Question: Feedback on Stratus Compute - Early feedback on Stratus Compute has been positive, with plans for software updates to improve performance [34][36] Question: Reimbursement updates - The OGM appeared on the Medicare clinical lab fee schedule as planned, with a rate around $1,300 [66] Question: Areas of strength in routine user group - Hematologic malignancies are the primary application for OGM adoption, with constitutional genetic disorders also showing strong growth [70][72]

Maravai LifeSciences (MRVI) Q4 2024 Earnings Call March 20, 2025 05:00 PM ET Company Participants Deb Hart - Head of Investor RelationsKevin Herde - Executive VP & CFOTrey Martin - CEODoug Schenkel - Managing DirectorRicki Levitus - Equity Research Associate - Life Sciences Tools & DiagnosticsDan Arias - Managing DirectorBrandon Couillard - Managing Director Conference Call Participants Matt Stanton - AnalystMatt Larew - Research Analyst - HealthcareTejas Savant - Executive Director & Senior Healthcare Equi ...