Thermo Fisher Scientific, Inc. (TMO – Analyst Report) reported solid second-quarter 2015 financial results. Adjusted earnings per share (EPS) in the quarter came in at $1.84, 6 cents ahead of the Zacks Consensus Estimate and higher than the year-ago quarter number by 6.9%. On a reported basis, second-quarter EPS of $1.27 showed a huge 84.1% surge year over year on account of charges associated with the acquisition of Life Technologies in the second quarter of 2014.
Thermo Fisher Scientific Inc. – Earnings Surprise | FindTheCompany
Revenues for the reported quarter reached $4.27 billion, down 1.15% year over year primarily due to severe currency-related headwind. However, the top line managed to steer ahead of the Zacks Consensus Estimate of $4.16 billion. Without considering divestitures that impacted revenues by 1% and currency translation which reduced the same by 6%, organic revenue growth in the reported quarter was 6% year over year.
Thermo Fisher currently operates in four business segments viz. Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services.
Barring the Life Sciences Solutions Segment, which grew 2.7% year over year to $1.13 billion, the company reported disappointing quarterly sales in the other three segments. Analytical Instruments Segment sales were $777 million (down 2%). Specialty Diagnostics Segment recorded $817 million (down 4.4%) and Laboratory Products and Services Segment was down 0.6% at $1.69 billion. The year-over-year results were negatively affected by the impact of unfavorable foreign exchange rates.
Gross margin of 47.9% during the second quarter was up 260 basis points (bps) year over year. In addition, Thermo Fisher witnessed a 25.7% increase in adjusted operating income leading to an expansion of 474 bps year over year in adjusted operating margin to 22.1%.
The company exited the quarter with cash and cash equivalents and short-term investment of $770.4 million compared with $1.35 billion at the end of 2014. Year to date, operating cash flow was $844.million versus the year-ago figure of $989.9 million.
