Having completed a third full quarter post the Life Technologies
acquisition, Thermo Fisher announced an outstanding fourth-quarter
2014 with adjusted EPS of $1.99, ahead of the Zacks Consensus
Estimate and the year-ago adjusted number by 39.2%. Revenues of
$4.49 billion sailed past the year-ago number by 29.8%, beating the
Zacks Consensus Estimate of $4.39 billion. The company is on track
with the integration process and has achieved $115 million in
synergies in 2014, significantly up from the $85 million originally
anticipated. However, in a challenging market environment, still
low organic growth remains a concern. Moreover, economic
uncertainties and currency headwinds continue to act as dampeners.
We are thus Neutral' on the stock.
Headquartered in Waltham, MA, Thermo Fisher Scientific Inc.
(TMO) is a scientific instrument maker and a world leader in
serving science. Thermo Fisher was incorporated in 1956 as Thermo
Electron Corporation. In Nov 2006, Thermo Fisher Scientific, Inc.
was formed through the merger of Thermo Electron Corporation with
Fisher Scientific International Inc.
On Feb 3, 2014, Thermo Fisher announced the much-anticipated
completion of the acquisition of Life Technologies Corporation. The
acquisition was closed on payment of approximately $13.6 billion in
cash, along with the assumption of $1.5 billion in net debt.
Following the acquisition, Thermo Fisher made changes in its
reporting segments Per the changes, effective from Jan 1, 2014, the
new segments are:
Life Sciences Solutions Segment: This is the new segment added
by the company post the acquisition of Life Technologies. It
incorporates majority of the former Life Technologies and Thermo
Fisher's Biosciences businesses. Although the segment has been only
recently added, the company has reported the results on a pro forma
Analytical Instruments: Formerly known as Analytical Technology,
this segment has been renamed in order to reflect the transfer of
the bioprocess production business to the newly formed Life
Sciences Solutions Segment post the takeover of Life Technologies.
This segment caters majorly to industrial and applied markets.
Specialty Diagnostics (SD): This segment, formed after the
acquisition of Phadia, serves customers in healthcare and clinical
laboratories with a portfolio of diagnostic test kits, reagents and
instruments used to increase the speed and accuracy of diagnoses to
improve patient care. The segment also includes the company's
healthcare market customer channel consisting of catalog,
e-commerce and direct sales. This segment has six primary
businesses Immuno Diagnostics, Clinical Diagnostics, Transplant
Diagnostics, Microbiology, Anatomical Pathology and Healthcare
Market Channel. Post-acquisition, management has incorporated the
two small Specialty Diagnostics businesses within Life Technologies
into the Specialty Diagnostics segment of Thermo Fisher.
Laboratory Products and Services (LPS): This segment serves
laboratory customers with equipment and consumables that improve
productivity and a range of BioPharma outsourcing services such as
clinical trials management and logistics. This segment also
includes the company's research and safety market customer channels
consisting of catalog, e-commerce and direct sales.
Post-acquisition, Thermo Fisher's Global Chemicals business has
moved from the Biosciences business to the Laboratory Products and
Thermo Fisher Scientific, Inc. (TMO): Read the Full
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
THERMO FISHER (TMO): Free Stock Analysis Report
To read this article on Zacks.com click here.