Thermo Fisher Scientific Inc. (NYSE:TMO) is scheduled to report Q3 earnings results before markets open for trading on October 21, 2020.
The company is expected to report earnings of $4.30/share on revenue of $7.676 billion. The consensus earnings per share (EPS) of $4.30/share is based on a poll of 18 analysts and represents a growth in eps of 46.4% over the same quarter last year, when the company reported earnings of $2.94/share.
The revenue forecast of $7.676 billion based on a poll of 16 analysts implies a year-over-year (YoY) growth in revenue of 22.4%. Last year the company reported $6.272 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from Thermo Fisher Scientific Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 27, 2020, the stock price reacted by increasing 1.8%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 22, 2020||$403.09||$410.48||1.8%||Increase|
|April 22, 2020||$319.62||$320.51||0.3%||Increase|
|January 30, 2020||$333.89||$313.19||−6.2%||Decline|
|October 23, 2019||$280.99||$293.44||4.4%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.55, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.55 implies a 0.5% chance of earnings manipulation.
Fundamentals And Technical Analysis
Thermo Fisher Scientific Inc. is currently trading at $465.57/share, down −0.6% for the day. The company is trading at approximately 99.1% of its 52-week high of $473.84/share. The company’s stock price is up 13.4% since the last earnings report and down −0.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 73.26 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 50.07 and a forward P/E multiple of 29.27.
Thermo Fisher Scientific Inc.’s current share price also implies a price-to-book (P/B) multiple of 6.21. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 27, 2020|
|Stock Price (Current)||$465.57|
|P/E Ratio (Fwd)||29.3x|
|Total Debt / Total Capital||10.3%|
|Levered Free Cash Flow||$4.245 billion|
|EV / EBITDA||28.9x|
Thermo Fisher Scientific Inc. is a large-cap stock with a market capitalization of $185.4 billion and a total enterprise value of $200.9 billion. The company operates in the Healthcare sector and the Life Sciences Tools & Services industry.
Thermo Fisher Scientific Inc. provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide. The company’s Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery and production of new drugs and vaccines, and diagnosis of diseases to pharmaceutical, biotechnology, agricultural, clinical, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for use in laboratory, on production line, and in field for pharmaceutical, biotechnology, academic, government, environmental, and research and industrial markets, as well as clinical laboratories. The company’s Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, and calibration verification fluids; blood-test systems and antibody tests; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; cancer diagnosis and medical research products; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Services segment provides laboratory refrigerators and freezers, and ultralow-temperature freezers and cryopreservation storage tanks; temperature control, sample preparation and preservation, centrifugation, and biological safety cabinet products; water analysis instruments; laboratory plastics and chemicals; and pharma services. It has collaboration with WuXi Diagnostics and Mayo Clinic to develop antibodies tests; a strategic collaboration with Schrödinger, Inc. to expand structure-based drug discovery to novel targets using Cryo-EM; and an agreement with Daiichi Sankyo to co-develop a companion diagnostic. The company was incorporated in 1956 and is headquartered in Waltham, Massachusetts.