Thermo Fisher Scientific's 4Q15 Earnings: What Can We Expect?
Analyst recommendations
Thermo Fisher Scientific (TMO) has announced that it will release its 4Q15 and full-year 2015 earnings results on January 28, 2016.
The table above lists the 16 brokerage firms that provided a target price over the next 12 months for Thermo Fisher. The consensus 12-month target price for Thermo Fisher was $157.20, amounting to a 14.4% return, compared with Thermo Fisher’s last price of $137.50 on January 6, 2016.
In a Bloomberg survey of 23 brokers recorded on January 6, 2016, about 91.3% of brokers rated Thermo Fisher as “buy,” while 8.7% of brokers rated the company as “hold.” None of the brokers rated Thermo Fisher as “sell.”
Thermo Fisher’s share price movement
After the release of the company’s third quarter earnings on October 21, 2015, Thermo Fisher’s share price decreased by approximately 1.2%, reaching $137.50 on January 6, 2016. Although the company reported higher-than-expected top-line and bottom-line results in 3Q15, the year-over-year revenue declined and mild profits were reported amid severe currency headwinds. Some of the other major medical device companies facing significant pressures due to unfavorable foreign exchange rates are Medtronic (MDT), Becton, Dickinson and Company (BDX), and Agilent Technologies (A).
Major revenue growth drivers
Thermo Fisher is focused on its emerging market growth strategy and developing products to achieve growth and profitability. In 2015, the company established a large number of COEs (centers of excellence) across emerging markets and developed some breakthrough products including immunodiagnostic tests, spectrometry software solutions, and sequencing products.
A number of strategic acquisitions led to the addition of complementary product segments to the company’s product portfolio and entry into new markets. As a result, the company is expected to deliver significant cost and revenue synergies. Investors seeking to invest in Thermo Fisher Scientific can invest in the iShares Global Healthcare ETF (IXJ). Thermo Fisher Scientific accounts for 1.3% of IBB’s total holdings.
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