Summary
Thermo Fisher Scientific Inc. (TMO) reported its financial results for the period ending September 25, 2015. The company experienced a slight decrease in total revenues for both the three-month and nine-month periods compared to the prior year, largely impacted by unfavorable foreign currency exchange rates. However, excluding these currency effects and considering acquisitions and divestitures, revenue growth was positive, driven by strong demand, particularly in the pharmaceutical and biotech sectors. Despite revenue headwinds from currency, the company demonstrated operational resilience. Operating income saw a decline in the third quarter, partly due to a significant gain from a business sale in the prior year's quarter. Nonetheless, segment income showed growth, and the company focused on productivity improvements and cost efficiencies. Acquisitions, such as Alfa Aesar and Advanced Scientifics, are being integrated to expand the company's portfolio and offerings. The company maintained a strong liquidity position, with sufficient cash and operating cash flow expected to cover near-term needs. Management remains focused on strategic growth initiatives and operational efficiencies.
Financial Highlights
56 data points| Revenue | $4.12B |
| Cost of Revenue | $1.85B |
| Gross Profit | $1.88B |
| R&D Expenses | $171.60M |
| SG&A Expenses | $1.13B |
| Operating Expenses | $3.56B |
| Operating Income | $562.90M |
| Interest Expense | $100.60M |
| Net Income | $476.10M |
| EPS (Basic) | $1.19 |
| EPS (Diluted) | $1.18 |
| Shares Outstanding (Basic) | 399.00M |
| Shares Outstanding (Diluted) | 402.00M |
Key Highlights
- 1Total revenues slightly decreased by 1.2% to $4.12 billion for Q3 2015 and by 0.7% to $12.31 billion for the first nine months of 2015, primarily due to unfavorable foreign currency translation (-$239.6 million in Q3, -$737.0 million in YTD).
- 2Excluding currency translation effects and acquisitions/divestitures, revenues increased by 4% in Q3 2015 and 4% for the first nine months of 2015, driven by strong demand in pharmaceutical and biotech industries.
- 3Operating income decreased by 12% to $562.9 million in Q3 2015, influenced by a $133 million gain from a business sale in Q3 2014 and unfavorable currency impacts.
- 4Net income for the third quarter increased slightly to $476.1 million from $471.6 million in the prior year, and for the first nine months increased to $1,372.8 million from $1,293.2 million, partly due to a significant income tax benefit in Q3 2015.
- 5The company completed acquisitions of Alfa Aesar for $389 million and Advanced Scientifics for $289 million in 2015, expanding its capabilities in research chemicals and single-use bioprocessing systems respectively.
- 6Cash flow from operations was $1.589 billion for the first nine months of 2015, a slight decrease from $1.666 billion in the prior year, impacted by higher incentive compensation and income tax payments.
- 7The company ended the period with $503.4 million in cash and cash equivalents, and maintains a $2.0 billion revolving credit facility, indicating a stable liquidity position to meet future cash requirements.