Why Third Point sold its stake in Thermo Fisher Scientific
Thermo Fisher Scientific, Inc. (TMO) was a 3.49% position that Third Point sold out last quarter. The position was initiated in 1Q 2013. The company provides analytical instruments, laboratory equipment, software, services, consumables, reagents, chemicals, and supplies to pharmaceutical and biotech companies, hospitals, and clinical diagnostic labs. The stock was up 70% in 2013.
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The combination of Thermo Fisher and Life Technologies builds on both companies’ technological strengths to accelerate results for life sciences customers working in proteomics, genomics, and cell biology. Life Technologies is known for its next-generation sequencing capability, and also has a range of technologies for bioproduction and forensics applications. The combined company is expected to challenge peer Illumina (ILMN) in the advanced genetic testing market. The combined company will also build on its strong foothold in Asia-Pacific, particularly in China, to meet increasing customer demand in life sciences and healthcare.
For fiscal 2014, Thermo Fisher said it expects adjusted earnings per share in the range of $6.70 to $6.90, representing an increase of 24% to 27% over 2013. The company expects to achieve 2014 revenue in the range of $16.63 billion to $16.83 billion.
Analysts are currently bullish about the stock.