UPDATE 3-Thermo Fisher trims 2010 rev view, shares fall

Tue Jul 27, 2010 10:24am EDT

* Q2 adjusted EPS 84 cents matches Street view

* Still sees 2010 adjusted EPS $3.40 to $3.50

* Lowers 2010 rev outlook to $10.6 bln to $10.75 bln

* Shares fall more than 8 pct (Adds analyst comment, share drop)

NEW YORK, July 27 (Reuters) - Thermo Fisher Scientific Inc (TMO.N) reported second-quarter revenue slightly below analyst forecasts and trimmed its full-year revenue outlook due to negative foreign currency trends, sending its shares down more than 8 percent.

Although the company on Tuesday reported higher quarterly profit that was in line with Wall Street expectations, the disappointing revenue trend spooked investors.

"Second-quarter results are unlikely enough to keep momentum in the stock despite solid gross margins and expense control" that kept earnings on track despite the revenue miss, Morgan Stanley analyst Marshall Urist said in a research note.

The analytical technologies business did maintain its 2010 forecast for adjusted earnings of $3.40 to $3.50 per share, excluding items, or growth of 11 percent to 15 percent over 2009 levels.

Thermo's second-quarter net profit rose to $237.3 million, or 57 cents per share, from $206.9 million, or 49 cents per share, a year ago.

Excluding items, the Waltham, Massachusetts-based company had adjusted earnings of 84 cents per share, matching analysts' average expectations, according to Thomson Reuters I/B/E/S.

Revenue for the quarter rose 7 percent to $2.65 billion, helped by acquisitions, a bit shy of the Thomson Reuters forecast of $2.66 billion.

Thermo said it expects revenue for the year to come in at $10.6 billion to $10.75 billion, down from its prior view of $10.65 billion to $10.8 billion and shy of Wall Street estimates of $10.77 billion.

The company saw sales grow 10 percent for the quarter to $1.1 billion.

But growth in laboratory products and services was not as robust, climbing 5 percent to $1.68 billion.

Chief Executive Marc Casper said the company has been putting its food safety equipment to good use during the months-long oil spill off the U.S. Gulf coast.

"We developed new screening methods that employ our leading technologies to help laboratories rapidly analyze seafood from the Gulf of Mexico for oil contamination," Casper said in a statement.

Thermo's shares fell 8.7 percent, or $4.43, to $46.59 in early New York Stock Exchange trading. (Reporting by Bill Berkrot and Ransdell Pierson; Editing by Derek Caney and Maureen Bavdek)

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