* Q3 adj EPS $1.19 vs est $1.16
* Q3 rev $3.09 bln vs est $2.99 bln
* Shares up over 4 pct at $60.02
* Says Q3 was helped by strong sales growth in China
By Zeba Siddiqui
Oct 24 Thermo Fisher Scientific raised
its full-year forecast for the second time this year as the
world's largest laboratory equipment maker benefited from its
presence in Asia, even as the weak U.S. and European economies
dragged on its competitors.
Thermo's shares rose as much as 7 percent to $60.52 in early
trade on Wednesday as analysts praised the company's ability to
outperform by managing strong organic growth.
"China came in at more than 20 percent growth again this
quarter and we had excellent growth in South Korea and good
growth in India as well," Chief Executive Marc Casper told
analysts on a post-earnings call.
A lull in government-sponsored medical research has hurt
life-sciences-tools companies, as the United States curbs
spending to fix its budgetary deficit.
Thermo, however, derives about half of its revenue from
outside the United States and has therefore been relatively less
affected by domestic headwinds, Wells Fargo analyst Tim Evans
Apart from Asia, the Waltham, Massachusetts-based company is
broadening its focus to include other emerging markets such as
Brazil and Russia.
"We spent a lot more money on emerging markets in this
quarter because we're confident in the momentum and we're
setting ourselves up for a bright 2013 and 2014," CEO Casper
Thermo has the kind of product portfolio that helps it gain
better market share in these regions, ISI Group analyst Ross
In India, for example, the company has been expanding its
presence for the last two years by acquiring local distributors
to deepen its foothold, Muken said.
RIVALS UNDER PRESSURE
Thermo peers Sigma-Aldrich and Waters Corp
both reported mixed results on Tuesday with profits in line, but
revenues failing to keep up with analysts' estimates.
The companies reported challenging market conditions and
Sigma-Aldrich warned that sales of its fine chemicals, which
have been below estimates, would continue to fluctuate.
UBS analyst Daniel Arias said he was looking for organic
growth of 2 percent for Thermo for the third quarter, but the
company outperformed with 4 percent.
"There has been a lot of pressure on the companies that have
reported so far, and so for Thermo Fisher to put up four percent
organic is pretty positive," Arias said.
Thermo's July-September net profit rose to $290.4 million,
or 79 cents per share, from $265.4 million, or 69 cents per
share, a year earlier.
Excluding acquisition-related costs and some other one-time
items, Thermo earned $1.19 per share in the third
quarter. Analysts on average had expected $1.16 per share,
according to Thomson Reuters I/B/E/S.
Revenue rose 5 percent to $3.09 billion, edging past Wall
Street estimates of $2.99 billion.
The specialty diagnostics unit, which has traditionally been
Thermo's strongest segment, brought in sales of $707 million in
the quarter, up 15 percent.
The laboratory products and services unit had sales of $1.51
billion, up 5 percent from the year ago quarter, while
analytical technologies sales edged 1 percent higher to $1.01
Thermo raised its 2012 outlook for adjusted per-share
earnings to between $4.81 and $4.88 from a range of $4.74 to
It said it now expects revenue to be $12.32 billion to
$12.40 billion, up from the previous forecast of $12.14 billion
to $12.26 billion.
The company's shares, which have risen over 23 percent this
year, were trading up 4 percent at $59.86 at midday on the New
York Stock Exchange.