Thursday morning, laboratory supplies and scientific instruments maker Thermo Fisher Scientific Inc. (TMO) posted a strong growth in its second-quarter profit, driven by robust demand in its scientific instruments. On an adjusted basis, earnings rose 22% and topped Street view by two cents. Further, the company raised low end of its prior-issued adjusted earnings guidance for the full year.
Q2 Results
The Waltham, Massachusetts-based company's second-quarter net income increased to $249.5 million or $0.57 per share, from $163.9 million or $0.37 per share in the year-ago quarter.
Income from continuing operations was $246.3 million or $0.56 per share, compared to $187.9 million or $0.42 per share in the same quarter of last year.
On an adjusted basis, net income totaled $347 million, up from $291.1 million reported last year. Adjusted earnings per share grew 22% to $0.79 from $0.65 earned in the prior year quarter.
On average, 11 Analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.77 per share for the quarter.
Quarterly revenues advanced 14% to $2.71 billion from $2.39 billion reported in the comparable quarter of the previous year. Nine Wall Street analysts had a consensus revenue estimate of $2.62 billion for the quarter.
The company noted that currency translation increased revenues by 4%, and acquisitions, net of divestitures, drove revenues by 2%.
Marijn Dekkers, president and chief executive officer of Thermo Fisher Scientific, commented, "Our strong results to date are right in line with our expectations, and position us well to achieve our financial goals for all of 2008."
GAAP operating income for the latest quarter was $330.2 million, compared with $243.0 million in 2007, and GAAP operating margin was 12.2%, compared with 10.2% a year ago.
Adjusted operating income increased 18% to $476.6 million from $404.6 million a year earlier, and adjusted operating margin expanded 60 basis points to 17.6%, from 17.0% in the same quarter of last year.
Analytical Technologies Segment
The company's Analytical Technologies Segment fetched second-quarter revenues of $1.16 billion, up 14% from prior year's revenue of $1.02 billion. Adjusted operating income increased 21%, and adjusted operating margin rose to 21.1%, over last year.
Laboratory Products and Services Segment
In the Laboratory Products and Services Segment, revenues grew 14% in the most recent quarter to $1.66 billion, from $1.45 billion reported in the second quarter of fiscal 2007. Adjusted operating income increased 14% year-over-year, and adjusted operating margin was 14.0% in both periods.
Year-To-Date Results
For the six-month period, the company reported net income of $482.5 million or $1.10 per share, compared to $302.8 million or $0.68 per share in the year-earlier period.
Income from continuing operations ascended to $479.7 million or $1.10 per share from $326.7 million or $0.74 per share in the six months ended June 30, 2007.
Adjusted net income for the period totaled $668.8 million or $1.53 per share, compared to $552.6 million or $1.25 per share in the previous year.
Year-to-date revenues increased to $5.26 billion from $4.72 billion in the corresponding period of the previous year.
FY08 Forecast
Looking ahead, the company increased low end of its adjusted earnings guidance for the year by $0.04, to a range of $3.11 - $3.17 per share. Additionally, the company maintains its revenue guidance of $10.6 billion - $10.7 billion for the full year 2008. Wall Street analysts have a consensus earnings estimate of $3.15 per share, on revenues of $10.65 billion for the year 2008.
Stock Quotes
Thermo Fisher closed Wednesday's trading session at $58.78. For the past 52-weeks, the stock has been trading between $46.63 and $62.02.
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