8-KRegulation FD

THERMO FISHER SCIENTIFIC INC. 8-K Report, Regulation FD Disclosure (Sep 10, 2020)

Filed September 10, 2020For Securities:TMO

Summary

Thermo Fisher Scientific Inc. (TMO) filed an 8-K on September 10, 2020, to provide updated financial guidance during a virtual Analyst Meeting. The company significantly raised its third-quarter organic revenue growth expectations to 24%, a substantial increase from the previously forecasted 15%. This upward revision reflects strong business conditions and likely continued momentum from demand related to the COVID-19 pandemic. Furthermore, Thermo Fisher offered initial guidance for the fourth quarter, projecting organic revenue growth between 13% and 27%. For the full year 2020, the company now expects organic revenue growth to be in the range of 13% to 16%. Investors should note that these are estimates and actual results may vary due to ongoing market uncertainties.

Key Highlights

  • 1Raised Q3 2020 organic revenue growth forecast from 15% to 24%.
  • 2Provided initial Q4 2020 organic revenue growth estimate of 13% to 27%.
  • 3Updated full-year 2020 organic revenue growth expectation to a range of 13% to 16%.
  • 4The updates were shared by the CFO during a virtual Analyst Meeting.
  • 5The company cautioned that actual results could differ from these estimates due to marketplace uncertainty.
  • 6Organic revenue is defined as reported revenue excluding acquisition/divestiture impacts and foreign currency translation.

Frequently Asked Questions

The updated guidance is driven by stronger-than-expected business conditions, as evidenced by the significant increase in projected third-quarter organic revenue growth. This likely reflects continued strong demand for Thermo Fisher's products and services, particularly in light of the ongoing COVID-19 pandemic.

The company now expects third-quarter organic revenue growth to be 24%, a substantial improvement from the 15% previously provided on July 22, 2020. This indicates a significant acceleration in performance.

Thermo Fisher explicitly stated that actual results could differ from these estimates due to 'greater-than-normal uncertainty that continues to exist in the marketplace.' The company's cautionary statement also lists factors like the duration and severity of the COVID-19 pandemic, economic conditions, and regulatory changes as potential risks.

Organic revenue growth, as defined by Thermo Fisher, excludes the impact of acquisitions, divestitures, and foreign currency translation. It provides a clearer view of the underlying growth of the existing business operations.