Thermo Fisher Scientific Surpasses Q4 Estimates, Boosted by Demand in Therapies
Thermo Fisher Scientific reported strong financial performance in its fourth quarter, exceeding analyst expectations for both revenue and profit. The company attributed this success to increased demand for products and services used in therapeutic development.
The contract drug manufacturing industry has recently faced decreased spending from biotech clients. However, recent interest rate cuts may lead to improved funding for biotechs as borrowing costs decrease.
Despite rate cuts, some life sciences companies, such as Danaher, have indicated caution among smaller biotech clients.
Sartorius, a Franco-German peer, recently posted positive annual results and reported a 23.1% increase in fourth-quarter orders for its Bioprocess Solutions division. This news boosted shares of life sciences firms like Thermo Fisher.
On an adjusted basis, Thermo Fisher earned $6.10 per share in the quarter ended December 31, surpassing analysts' estimates of $5.94 per share. Revenue rose 5% to $11.40 billion, beating expectations of $11.28 billion.
The laboratory products segment, which provides products and services for clinical trials and drug development, generated $5.94 billion in revenue. While this fell slightly below estimates of $5.97 billion, it still accounted for over half of Thermo Fisher's total sales.