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.
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.
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).