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Thermo Fisher’s Q2 2018 Estimates: Revenue Growth Expected

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Thermo Fisher’s Q2 2018 revenue estimates

Wall Street analysts expect Thermo Fisher’s (TMO) revenues to reflect 18.1% growth to $5.9 billion during the second quarter. Thermo Fisher Scientific provides products and services through its brands, which include Thermo Scientific, Fisher Scientific, Applied Biosystems, Invitrogen, and Unity Lab Services.

The chart above compares the revenues of Thermo Fisher since the first quarter of 2017 and estimates for the second quarter. Consumables contribute over 50.0% of total revenues, while services and instruments contribute around 22.0% and 24.0%, respectively. Analysts expect this growth to be driven by strong performance of consumables, instruments, and services.

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Revenue performance

Thermo Fisher’s segment-wise revenue estimates for the second quarter are as follows:

  • Life Sciences Solutions (including reagents, instruments, and consumables) contributes around 25% of total revenues for Thermo Fisher. The Life Sciences Solutions segment is expected to report growth in YoY (year-over-year) revenues during the second quarter, following strong performance of consumables and instruments.
  • Analytical Instruments provides instruments, consumables, software, and services, and the segment contributes over 20.0% of total revenues for Thermo Fisher. The Analytical Instruments segment is expected to report growth in YoY revenues during the quarter.
  • Specialty Diagnostics includes diagnostic test kits, culture media, instruments, and diagnosis-related products. This segment contributes ~16.0% of total revenues for Thermo Fisher. Specialty Diagnostics is expected to report growth in YoY revenues during the quarter.
  • Laboratory Products and Services provide self-manufactured and sourced products for laboratories. This segment is the largest revenue contributor for Thermo Fisher and contributes over 40.0% of total revenues for the company. The segment is expected to report growth in YoY revenues during the quarter.

The Health Care Select Sector SPDR ETF (XLV) holds 2.6% of its total investments in Thermo Fisher (TMO), 10.0% in Johnson & Johnson (JNJ), 3.5% in Medtronic (MDT), and 1.6% in Stryker Corporation (SYK).

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