Summary
Thermo Fisher Scientific Inc. (TMO) reported strong performance for the nine months ended September 29, 2018, with total revenues increasing by 20% year-over-year to $17.85 billion. This growth was driven by both organic increases and strategic acquisitions, notably the significant acquisition of Patheon in the prior year. Net income rose to $2.04 billion, a 20% increase from the same period in 2017, reflecting improved operating efficiencies and a lower effective tax rate. The company's diverse segment performance, particularly the robust growth in Laboratory Products and Services and Life Sciences Solutions, highlights its broad market reach and resilience. Financially, TMO demonstrated solid cash flow generation, with operating cash flow increasing to $2.74 billion for the nine months ended September 29, 2018. Despite significant investment in acquisitions and capital expenditures, the company maintained a healthy liquidity position with $1.1 billion in cash and cash equivalents and ample availability under its revolving credit facility. Management expressed confidence in its ability to meet future cash requirements.
Financial Highlights
55 data points| Revenue | $5.92B |
| Gross Profit | $2.62B |
| R&D Expenses | $240.00M |
| SG&A Expenses | $1.49B |
| Operating Expenses | $5.01B |
| Operating Income | $912.00M |
| Interest Expense | $162.00M |
| Net Income | $709.00M |
| EPS (Basic) | $1.76 |
| EPS (Diluted) | $1.75 |
| Shares Outstanding (Basic) | 402.00M |
| Shares Outstanding (Diluted) | 406.00M |
Key Highlights
- 1Total revenues grew 20% to $17.85 billion for the nine months ended September 29, 2018, compared to $14.87 billion in the prior year.
- 2Net income increased by 20% to $2.04 billion for the nine months ended September 29, 2018, compared to $1.697 billion in the prior year.
- 3Operating cash flow for the nine months ended September 29, 2018, was $2.74 billion, up from $2.14 billion in the comparable 2017 period.
- 4The Laboratory Products and Services segment showed significant revenue growth of 37% for the nine-month period, largely driven by acquisitions.
- 5Acquisitions remain a key growth driver, with recent notable acquisitions including IntegenX Inc. and Becton Dickinson's Advanced Bioprocessing business.
- 6The company announced plans to acquire Gatan, Inc. for approximately $925 million, indicating continued strategic inorganic growth.
- 7Total shareholders' equity increased to $26.89 billion as of September 29, 2018, up from $25.41 billion at the end of 2017, reflecting retained earnings growth.