Thermo Fisher’s Third-Quarter Revenue Estimates

Thermo Fisher’s revenue estimates

As we discussed in the previous part, Wall Street analysts expect Thermo Fisher Scientific (TMO) to report 11.5% revenue growth to $5.70 billion during the third quarter. Thermo Fisher provides products and services through its brands including Thermo Scientific, Fisher Scientific, Invitrogen, Unity Lab Services, and Applied Biosystems.

Thermo Fisher’s Third-Quarter Revenue Estimates

The above graph compares Thermo Fisher’s revenues since the first quarter of 2017 with the third-quarter estimates. Consumables contribute over 50% of the total revenues, while services and instruments contribute ~22% and 24%, respectively. Analysts expect the growth to be driven by consumables, instruments, and services’ strong performance.

Revenue performance

Below are the segment-wise revenue estimates for Thermo Fisher in the third quarter.

The Life Sciences Solutions segment, including reagents, instruments, and consumables, contributes ~25% of Thermo Fisher’s total revenues. The segment’s revenues are expected to be ~$1.5 billion YoY (year-over-year) during the quarter following consumables and instruments’ strong performance.

The Analytical Instruments segment provides instruments, consumables, software, and services. The segment contributes over 20% of Thermo Fisher’s total revenues. The Analytical Instruments segment’s revenues are expected to be ~$1.2 billion YoY during the third quarter.

The Specialty Diagnostics segment includes diagnostic test kits, culture media, instruments, and diagnoses-related products. The segment contributes ~16% of Thermo Fisher’s total revenues. The Specialty Diagnostics segment’s revenues are expected to be ~$900 million YoY during the quarter.

The Laboratory Products and Services segment provides self-manufactured and sourced products for laboratories. The segment is Thermo Fisher’s largest revenue contributor. The segment contributes over 40% of the company’s total revenues. The Laboratory Products and Services segment’s revenues are expected to be ~$2.1 billion YoY during the quarter.

Notably, the iShares US Medical Devices ETF (IHI) holds 7.6% of its total investments in Thermo Fisher, 9.6% in Medtronic (MDT), 5.1% in Stryker (SYK), and 5.8% in Becton, Dickinson and Company (BDX).