Research Desk Line-up: Exact Sciences Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 3, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Thermo Fisher Scientific Inc. (NYSE: TMO ), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TMO , following the Company's release of its second quarter fiscal 2017 earnings results on July 25, 2017. The maker of scientific instrument and laboratory supplies beat top- and bottom-line expectations and also raised its revenue and adjusted earnings guidance for 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Medical Laboratories & Research industry. Pro-TD has currently selected Exact Sciences Corporation (NASDAQ: EXAS ) for due-diligence and potential coverage as the Company announced on July 25, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Exact Sciences when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TMO; also brushing on EXAS. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=TMO
http://protraderdaily.com/optin/?symbol=EXAS
Earnings Reviewed
For the second quarter ended July 01, 2017, Thermo Fisher's revenue grew 10% to $4.99 billion compared to $4.54 billion in Q2 2016. The Company's organic revenue growth was 4%; acquisitions increased revenue by 8% and currency translation reduced revenue by 1%. The Company's revenue numbers exceeded analysts' expectations of $4.92 billion.
Thermo Fisher's adjusted gross margin came in at 48.3% in Q2 2017. This represents a contraction of 30 basis points from the prior year, primarily driven by business mix and foreign exchange. The Company's adjusted SG&A in the reported quarter was 20.6% of revenue, which is 120 basis points favorable to Q2 2016, primarily driven by business mix and the impact of acquisitions.
During Q2 2017, Thermo Fisher's GAAP operating income grew to $752 million compared with $638 million in Q2 2016. GAAP operating margin increased to 15.1% compared with 14.1% in the prior year's same quarter. The Company's adjusted operating income increased 13% and adjusted operating margin expanded 50 basis points to 23.3% versus 22.8% in the prior year's comparable quarter. The 50 basis points of expansion was the result of organic growth, driven by strong contributions from the Company's PPI Business System and volume leverage. Adjusted operating income for the second quarter of 2017 also grew 13% compared to the same quarter last year.
For Q2 2017, Thermo Fisher posted net income of $611.6 million, up 12.3% compared to Q2 2016. The Waltham, Massachusetts-based Company's earnings per share surged 20% to $1.56 per share. Earnings, adjusted for amortization and restructuring costs, rose 13% to $2.30 per share and topped Wall Street's expectations of $2.27 per share.
Segment Results
In Q2 2017, Thermo Fisher's Life Sciences Solutions segment's revenue grew 3% to $1.40 billion compared with revenue of $1.37 billion in Q2 2016. This segment's adjusted operating margin increased to 31.9% in the reported quarter versus 28.5% in the prior year's same quarter.
Thermo Fisher's Analytical segment's revenue rose 47% to $1.17 billion in Q2 2017 compared with revenue of $794 million in Q2 2016. The Analytical Instruments division results reflected the acquisition of FEI Co. in September 2016. The segment's adjusted operating margin increased to 20.0% in the reported quarter versus 18.3% in the prior year's corresponding quarter.
During Q2 2017, Thermo Fisher's Specialty Diagnostics segment's revenue totaled $862 million, up 1% compared with revenue of $851 million in Q2 2016. For the reported quarter, the segment recorded adjusted operating margin of 27.3% versus 27.9% in the year earlier comparable quarter.
Thermo Fisher's Laboratory Products and Services segment's revenue grew 4% to $1.79 billion compared with revenue of $1.72 billion in Q2 2016. The segment's adjusted operating margin was 13.8% versus 15.1% in the year ago same period.
Cash Matters
Thermo Fisher's cash flow from continuing operations for H1 2017 totaled $1.21 billion, while free cash flow was $1.03 billion after deducting net capital expenditures of $180 million. The Company ended the reported quarter with $650 million in cash and investments.
During Q2 2017, Thermo Fisher completed $250 million of share buybacks and paid $60 million in dividends. The Company's total debt at the end of the reported quarter was $16.8 billion, down $300 million sequentially, while its leverage ratio at the end of the quarter was 3.4x total debt to adjusted EBITDA, down from 3.6x at the end of Q1 2017.
Guidance
Thermo Fisher raised it's 2017 guidance to reflect strong second quarter operational performance and a less adverse foreign exchange environment. The Company increased its revenue guidance to a new range of $19.71 billion to $19.89 billion versus its previous guidance of $19.51 to $19.71 billion, reflecting revenue growth in the range of 8% to 9% on a y-o-y basis. Thermo Fisher also raised forecasts to a range of $9.15 to $9.28 versus the previously communicated $9.12 to $9.28 range, for 11% to 12% on a y-o-y basis.
Stock Performance
At the closing bell, on Wednesday, August 02, 2017, Thermo Fisher Scientific's stock marginally climbed 0.55%, ending the trading session at $176.44. A total volume of 1.37 million shares have exchanged hands. The Company's stock price surged 4.82% in the last three months, 15.37% in the past six months, and 12.78% in the previous twelve months. Moreover, the stock rallied 25.05% since the start of the year. The stock is trading at a PE ratio of 30.73 and has a dividend yield of 0.34%. The stock currently has a market cap of $68.75 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com . Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/ .
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily