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Taking Stock of Thermo Fisher as the Year Wraps Up



Company overview

Thermo Fisher Scientific (TMO) has four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. In this series, we’ll explore Thermo Fisher’s financials and valuation, and analysts’ views on its stock.

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Thermo Fisher’s top line

In the third quarter of this year, Thermo Fisher’s total revenue rose YoY (year-over-year) to $5.92 billion from $5.12 billion. It generated $2.92 billion from US markets and $3.0 billion from international markets, compared with $2.45 billion and $2.66 billion, respectively, in the same quarter of the year prior. Thermo Fisher generates revenue from product sales and services. Its product revenue increased YoY to $4.57 billion from $4.23 billion, and its service revenue increased YoY to $1.35 billion from $884.0 million.

Segment performance

In the third quarter, Thermo Fisher’s Life Sciences Solutions revenue rose YoY to $1.5 billion from $1.38 billion. This segment includes reagents, instruments, and consumables. Analytical Instruments, which comprises instruments, consumables, software, and laboratory and production services, saw its revenue rise YoY to $1.33 billion from $1.19 billion.

Specialty Diagnostics revenue, from sales of diagnostic test kits, reagents, culture media, instruments, and other diagnostic products, rose YoY to $894.0 million from $844.0 million, while Laboratory Products and Services revenue rose YoY to $2.47 billion from $1.93 billion. Next, we’ll look at Thermo Fisher’s gross margin trends.


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