Summary
Thermo Fisher Scientific Inc. reported steady revenue performance for the third quarter of fiscal year 2024, with total revenues reaching $10.598 billion, largely in line with the prior year's $10.574 billion. For the nine-month period, revenues saw a slight decrease of 2% to $31.484 billion from $31.971 billion in the prior year. The company experienced a year-over-year decrease in diluted EPS for the quarter to $4.25 from $4.42, but a growth in diluted EPS for the nine-month period to $11.75 from $11.25. This performance reflects a normalization of COVID-19 related demand and a challenging macroeconomic environment impacting revenue growth across several segments, particularly Life Sciences Solutions and Laboratory Products and Biopharma Services. The company continues to strategically invest in innovation and commercial capabilities. The acquisition of Olink Holding AB in July 2024 for $3.146 billion, focused on enhancing its proteomics capabilities within the Life Sciences Solutions segment, is a key strategic move. Despite revenue headwinds from declining COVID-19 related demand, the company is demonstrating operational resilience with strong productivity improvements and cost management, as evidenced by the growth in GAAP operating income for the nine-month period and a solid operating margin. Management remains confident in its ability to meet future cash requirements through existing cash, operating cash flow, and available credit, while continuing to return capital to shareholders through share repurchases and dividends.
Financial Highlights
55 data points| Revenue | $10.60B |
| R&D Expenses | $346.00M |
| SG&A Expenses | $2.10B |
| Operating Expenses | $8.76B |
| Operating Income | $1.84B |
| Net Income | $1.63B |
| EPS (Basic) | $4.26 |
| EPS (Diluted) | $4.25 |
| Shares Outstanding (Basic) | 382.00M |
| Shares Outstanding (Diluted) | 384.00M |
Key Highlights
- 1Total revenues for the third quarter of 2024 were $10.598 billion, a slight increase of 0% year-over-year.
- 2GAAP diluted EPS for the third quarter decreased to $4.25 from $4.42 in the prior year, while nine-month diluted EPS increased to $11.75 from $11.25.
- 3Acquired Olink Holding AB for $3.146 billion in July 2024, bolstering the Life Sciences Solutions segment with proteomics capabilities.
- 4Operating income for the nine months ended September 28, 2024, increased by 6% to $5.321 billion.
- 5Free cash flow for the nine months increased by 22% to $4.498 billion compared to the prior year.
- 6The company repurchased $3.00 billion of common stock in the first nine months of 2024 and has $1.00 billion remaining on its repurchase authorization.
- 7Organic revenue growth was flat for the third quarter and down 2% for the first nine months, reflecting the post-COVID normalization and macroeconomic challenges.