Thermo Fisher Scientific
) is scheduled to report its fourth-quarter and full-year 2012
results before the market opens on Thursday, Jan 31, 2012. Let's
see how things are shaping up before the announcement.
Growth Factors This Past Quarter
Thermo Fisher has strong international operations and
witnessed consistent growth in Asia-Pacific. As a part of Thermo
Fisher's plans to focus on Asia-Pacific, it opened a new factory
in Suzhou, China, in November, thus bolstering the R&D
infrastructure there. The company is also optimistic about the $2
billion addressable market in India, which holds immense
opportunities in industries like pharmaceutical health care, food
safety and the environment.
We are also encouraged by the company's progress with respect
to reducing manufacturing footprint through suitable
acquisitions. The most recent is the newest acquisition of One
Lambda, which is likely to strengthen its foothold in the
immensely potent transplant diagnostics market.
However, concern remains about lower organic growth
expectations over the next two years as its exposure to China is
still quite low, which does not encourage
return on invested capital (ROIC)
Our proven model does not conclusively show that Thermo Fisher
is likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP and a Zacks Rank of
#1, 2 or 3 for this to happen. That is not the case here as you
will see below.
Zacks Earnings ESP of
: The Most Accurate estimate stands at $1.28, while the Zacks
Consensus Estimate is also pegged at $1.28. This comes to a
difference of 0.00%.
Zacks #2 Rank (Buy)
AlthoughThermo Fisher'sZacks #2 Rank (Buy) has higher chance of
beating earnings, together with a 0.00% ESP, it makes surprise
prediction difficult. The sell rated stocks (#4 and #5) should
never be considered going into an earnings
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right ingredients to post an
earnings beat this quarter:
), Earnings ESP of +72.73% and Zacks Rank #1 (Strong Buy)
Becton, Dickinson and Company
), Earnings ESP of +3.25% and Zacks Rank #2 (Buy)
Henry Schein Inc.
), Earnings ESP of +0.83% and Zacks Rank #1 (Strong Buy).
THERMO FISHER (TMO): Free Stock Analysis
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