July 23 (Reuters) – Thermo Fisher Scientific beat Wall Street estimates for second-quarter profit and revenue on Thursday, as improving customer demand lifted sales across all its business segments.
Shares of the Waltham, Massachusetts-based company were up more than 5% in premarket trading.
The life sciences tools market has shown signs of improvement as biotech and pharmaceutical companies increase spending on research and manufacturing after a prolonged post-pandemic slowdown. Thermo Fisher said customer activity across its markets continued to strengthen.
“Our end markets continue to strengthen and we’re making great progress enhancing our capabilities,” CEO Marc Casper said.
Thermo Fisher’s laboratory products and biopharma services segment, which supports clinical trials and drug manufacturing, posted a near 12% rise in revenue to $6.69 billion.
The life-sciences solutions segment, which supplies products used in biological research and drug production, recorded an increase of about 13% in revenue to $2.82 billion.
The company’s quarterly revenue grew 10% to $11.99 billion, above analysts’ estimate of $11.70 billion, according to data compiled by LSEG.
Peer Danaher also beat quarterly profit estimates and raised its annual profit outlook. However, it cut its full-year core revenue growth outlook earlier this week due to weaker respiratory testing revenue, and also reported lower-than-expected revenue in its biotechnology business.
The results should reassure investors that end markets for life-sciences tools are turning and that Danaher’s bioprocessing order delay was “company-specific” and “not reflective of the industry,” Evercore ISI analyst Vijay Kumar said.
Thermo Fisher posted second-quarter adjusted earnings of $6.03 per share, above analysts’ average estimate of $5.71 per share.
(Reporting by Kunal Das and Puyaan Singh in Bengaluru; Editing by Tasim Zahid)
