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Key Takeaways
- Fisher Thermo Scientific shares tumbled to a more than three-year low as sales missed estimates and the company cut its guidance.
- The lab equipment and analytical instruments maker blamed increasingly weakening market conditions for the slump.
- Fisher Thermo reduced its full-year EPS and sales outlook for the second quarter in a row.
Shares of Thermo Fisher Scientific (TMO) slumped over 7% in early trading Wednesday after the maker of lab equipment and analytical instruments posted weaker-than-expected sales and cut its outlook for a second-straight quarter on slowing demand.
Thermo Fisher’s third quarter fiscal 2023 revenue fell 1% from a year ago to $10.57 billion, just short of estimates. Earnings per share (EPS) of $5.69 exceeded forecasts.
The company indicated that “the impact of the macroeconomic conditions that the industry has experienced through the year increased in the third quarter.” Thermo Fisher noted strength in its PPI (Practical Process Improvement) Business System and “strong execution of our global team” for its profit gains.
CEO Marc Casper pointed to “weaker market conditions” and said the company is working through a “dynamic environment.” He added that Thermo Fisher’s $3.1 billion purchase of Sweden-based biotech firm Olink earlier this month is an example of how Thermo Fisher is investing in the future.
However, the company also announced that it was slashing its full-year EPS to $21.50 on sales of $42.7 billion. In April, it predicted EPS of $23.70 with sales of $45.3 billion. It reduced that in July to forecasting EPS as high as $22.72 and sales totaling as much as $44 billion.
The news sent shares of Thermo Fisher Scientific to their lowest level in more than three years.
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