Thermo Fisher Scientific-Thermo Fisher Q4 Earnings and Revenues Top Estimates, Stock Up

Core Insights - Thermo Fisher Scientific Inc. reported fourth-quarter 2024 adjusted earnings per share (EPS) of $6.10, exceeding the Zacks Consensus Estimate by 2.9% and reflecting a year-over-year increase of 7.6% [1][2] - The company’s full-year adjusted EPS reached$ 21.86, a 1.4% increase from 2023, surpassing the Zacks Consensus Estimate by 0.8% [2] - Following the earnings announcement, shares of Thermo Fisher rose 1.2% in pre-market trading [2] Revenue Performance - Revenues for the fourth quarter increased by 4.6% year over year to $11.39 billion, surpassing the Zacks Consensus Estimate by 1.2% [3] - Full-year revenues totaled$ 42.88 billion, reflecting a slight increase of 0.05% from 2023 and exceeding the Zacks Consensus Estimate by 0.3% [3] Segment Analysis - Life Sciences Solutions segment revenues (22.9% of total) increased by 5.3% year over year to $2.60 billion, missing projections [4] - Analytical Instruments segment revenues (19.2%) rose by 7.3% to$ 2.19 billion, meeting projections [5] - Specialty Diagnostics segment revenues (10.2%) increased by 5.4% year over year to $1.16 billion, surpassing projections [6] - Laboratory Products and Biopharma Services segment revenues (52.1%) rose by 3.8% to$ 5.94 billion, exceeding projections [7] Margin Performance - Gross margin for the fourth quarter was 43%, expanding by 173 basis points year over year despite a 1.6% increase in the cost of revenues [8] - Selling, general and administrative expenses rose by 10.4% to $1.85 billion, while research and development expenses increased by 14.4% to$ 374 million [8] - Adjusted operating margin for the quarter was 23.5%, reflecting an expansion of 61 basis points [8] Financial Position - At the end of the fourth quarter of 2024, the company had cash and cash equivalents and short-term investments of $5.56 billion, down from$ 8.08 billion a year ago [9] - Cumulative net cash from operating activities at the end of 2024 was $3.29 billion, compared to$ 3.72 billion in the previous year [9] Growth Strategy - In 2024, the company launched several innovative products and completed the acquisition of Olink, enhancing its growth strategy [12] - These developments contributed to meaningful commercial wins for the company in 2024 [12] Dividend History - Thermo Fisher has a consistent dividend-paying history, with a five-year annualized dividend growth rate of 14.89% [10] Overall Assessment - The company exited the fourth quarter of 2024 with better-than-expected results, with both earnings and revenues exceeding estimates, and all business segments reported growth [11] - Margin expansions during the quarter were also viewed positively [11]