Thermo Fisher Stock Drops, Lowest Close in Over Three Years
Thermo Fisher Scientific Inc.'s stock (TMO) experienced a significant decline of around 9% on Wednesday, bringing it to its lowest closing point in more than three years. The company, known for its supply of analytics, diagnostics, and laboratory services, fell short of revenue expectations for the third quarter and adjusted its guidance accordingly.
Financial Performance
During the quarter, Thermo Fisher Scientific recorded a net income of $1.715 billion, or $4.42 per share, an increase from the previous year's $1.495 billion, or $3.79 per share. Adjusted earnings per share came in at $5.69, surpassing the FactSet consensus estimate of $5.61. However, the company's revenue declined to $10.574 billion from $10.677 billion, falling short of the FactSet consensus estimate of $10.600 billion.
Weakening Market Conditions
CEO Marc Casper acknowledged that market conditions worsened during the three-month period, contributing to the company's challenges.
Revised Guidance
Thermo Fisher Scientific adjusted its full-year guidance, now anticipating adjusted earnings per share of $21.50. This is a decrease from the previously provided range of $22.28 to $22.72 in July. The company also revised its revenue outlook to $42.7 billion, down from the prior guidance range of $43.4 billion to $44.0 billion.
Stock Performance
The stock is currently heading towards its lowest closing point since September 8, 2020, when it concluded at $405.30. It has experienced four consecutive days of decline, resulting in an overall loss of 11.1%.
Despite these challenges, Thermo Fisher Scientific remains committed to its mission of providing valuable analytics, diagnostics, and laboratory services to its customers.
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