* First-quarter adjusted EPS $1.37 vs Street view $1.29
* Revenue up 4 percent to $3.19 billion
* Shares gain 1 percent
By Bill Berkrot
April 24 Laboratory equipment maker Thermo
Fisher Scientific Inc, which this month agreed to
acquire Life Technologies Inc for more than $13
billion, on Wednesday reported a higher-than-expected
first-quarter profit, helped by a 10 percent rise in specialty
Excluding one-time items, Thermo Fisher posted earnings of
$1.37 per share, topping analysts average expectations by 8
cents, according to Thomson Reuters I/B/E/S.
Thermo Fisher shares were up 1 percent.
The company raised the low end of its full-year revenue view
and lowered its 2013 earnings-per-share forecast to reflect its
decision to suspend share buybacks as it prepares to pay for
Life Tech. The $13.6 billion Life Tech acquisition, which will
give Thermo Fisher a major presence in advanced genetic testing,
is expected to close in early 2014.
Thermo Fisher now expects adjusted earnings of $5.27 to
$5.39 per share, down from its prior view of $5.32 to $5.46 per
share. It expects 2013 revenue of $12.84 billion to $13 billion.
The low end of the previously announced range was $12.80
billion. Analysts are looking for earnings of $5.40 per share
and revenue of $12.96 billion.
"The business is holding up very well considering the
pressure on the industrial and academic (markets)," said Mizuho
Securities analyst Peter Lawson. "On the flip side, the pharma
business is doing exceptionally well."
The automatic U.S. budget cuts known as sequestration is
expected to hurt academic and government research customers.
Thermo, on a conference call with analysts, said
sequestration was likely to have a bigger impact over the rest
of the year than it did in the first quarter.
The world's largest maker of laboratory equipment and
scientific instruments reported a net profit from continuing
operations of $340.8 million, or 94 cents per share, compared
with a profit of $280.8 million, or 76 cents per share, a year
Revenue for the quarter rose 4 percent to $3.19 billion,
roughly in line with Wall Street estimates of $3.17 billion.
Specialty Diagnostics saw sales rise 10 percent to $806
million, while sales from the Laboratory Products and Services
unit rose 5 percent to $1.54 billion.
Sales from the Analytical Technologies unit fell to $978
million from $980 million a year ago, possibly reflecting an
impact of sequestration.
Thermo said it was having a bigger impact on capital
spending than on consumables and reagents used in biotech and
Thermo Fisher's shares were up 79 cents at $81.43 in late
morning trading on the New York Stock Exchange.