Summary
Thermo Fisher Scientific Inc. reported solid financial results for the quarter ending July 2, 2011, demonstrating revenue growth and improved operational efficiency. The company saw a significant increase in revenue driven by acquisitions, notably Dionex, and favorable currency translation effects. While operating income saw a slight decrease year-over-year, this was largely attributed to acquisition-related charges and amortization expenses. The company also made substantial progress in its strategic acquisition of Phadia, indicating a forward-looking approach to expanding its diagnostics capabilities. Liquidity remains strong, with substantial cash and cash equivalents bolstered by operating activities and proceeds from asset sales. The company is well-positioned to fund its ongoing strategic initiatives, including the Phadia acquisition, through a combination of existing cash, operational cash flow, and available credit facilities. Investors should note the company's active acquisition strategy, which is a key driver of growth, alongside continued efforts in operational efficiency and integration.
Financial Highlights
53 data points| Revenue | $2.85B |
| Cost of Revenue | $1.43B |
| Gross Profit | $1.16B |
| SG&A Expenses | $772.90M |
| Operating Expenses | $2.59B |
| Operating Income | $265.10M |
| Interest Expense | $38.90M |
| Net Income | $523.40M |
| EPS (Basic) | $1.37 |
| EPS (Diluted) | $1.36 |
| Shares Outstanding (Basic) | 381.90M |
| Shares Outstanding (Diluted) | 385.90M |
Key Highlights
- 1Revenue increased by 12% to $2.90 billion for the second quarter of 2011 compared to the prior year, driven by acquisitions (Dionex) and favorable currency translation.
- 2Operating income decreased by 11% to $266 million, impacted by $75 million in acquisition-related charges and $13 million in increased amortization expense following the Dionex acquisition.
- 3The company completed the sale of Athena Diagnostics and Lancaster Laboratories for $920 million in cash and escrowed proceeds, resulting in an after-tax gain of $304 million.
- 4Thermo Fisher announced a pending acquisition of Phadia for approximately $3.51 billion, aiming to expand its allergy and autoimmunity diagnostics business.
- 5Cash flow from operating activities increased to $693 million for the first six months of 2011, up from $627 million in the same period of 2010, indicating strong operational cash generation.
- 6The company repurchased $763 million of its common stock during the first six months of 2011, demonstrating a commitment to returning capital to shareholders.