Company Reports

Thermo Fisher didn’t just come out of the toughest two years for the global economy unscathed, the company delivered some of its best results. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to meet massive demand. The pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain, and the current budget-constrained environment still leaves the company in a better position than most of its peers. Thermo Fisher remains in a great position to leverage its share gains in the biopharma channel and capitalize on strong long-term demand.

We are maintaining our $600 fair value estimate for wide-moat Thermo Fisher following its first-quarter results. Organic revenue declined 4% in the quarter, in line with recent trends. The company, however, noted a moderately improved demand environment, which allowed it to slightly raise the lower end of its annual revenue guidance. We reiterate our wide moat rating.

We are maintaining our $600 fair value estimate for wide-moat Thermo Fisher following its fourth-quarter results. As was the case in the prior quarter, the company is seeing continuing broad market weakness but managing it well, with core revenue down 4%. With demand softness likely to persist in the near term, the firm's approach to costs is impressive, with adjusted operating margin improving 70 basis points year over year. We maintain our wide moat rating.

We are maintaining our $600 fair value estimate for wide-moat Thermo Fisher following its third-quarter results. The company is seeing continuing broad market weakness but still managed deliver core organic growth in the quarter. With demand softness likely to persist in the near term, the firm's approach to costs is impressive, with adjusted operating margin up 200 basis points year over year. We are slightly dialing down our forecasts for revenue; however, the impact of a slightly reduced forecast doesn't have a material impact on our valuation. We maintain our wide moat rating.

We are maintaining our $600 fair value estimate for wide-moat Thermo Fisher following its second-quarter results. The company delivered a rare below-expectations performance as China activity decelerated and demand softened across the developed markets. Our forecasts for revenue and earnings were slightly below the consensus estimates but still above the updated company guidance. However, the impact of a slightly reduced forecast doesn't have a material impact on our valuation. We maintain our wide moat rating.

Thermo Fisher didn’t just come out of the toughest two years for the global economy unscathed, the company managed to deliver its best year ever despite challenges around the economy and spending budgets. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to be among the first to market with a reliable coronavirus test and at capacity needed to meet massive demand. The coronavirus pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain. Even as the pandemic revenue fades, the company remains in a great position to leverage its share gains in the biopharma channel and capitalize on strong long-term demand.

Life science toolmakers that enable drug production operate attractive businesses for two major reasons that investors often find compelling. First, regulation of the drug manufacturing process creates highly durable switching costs for end users and long potential revenue streams for life science toolmakers. Second, life science firms often benefit from broad exposure to biopharmaceutical growth without taking on much product-specific risk.

We are maintaining our $590 fair value estimate for wide-moat Thermo Fisher following its first-quarter results. With COVID-19-related revenue predictably declining, the company delivered results largely in line with our forecast. The firm's more tempered commentary on the macro environment is unlikely to materially challenge the overall near-term growth profile and, as such, we're not making any changes to our forecast. We view shares as fairly valued.

We are anticipating a modest increase to our $590 fair value estimate for wide-moat Thermo Fisher after a strong fiscal 2022. Despite the boost that COVID-19 gave fiscal 2021 and the resulting tough comparables as testing revenue decreased by $4.2 billion, the company managed to maintain flat organic revenue growth and grew its core organic revenue by 14% in 2022. We view shares as fairly valued.

Thermo Fisher didn’t just come out of the toughest two years for the global economy unscathed, the company managed to deliver its best year ever despite challenges around the economy and spending budgets. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to be among the first to market with a reliable coronavirus test and at capacity needed to meet massive demand. The coronavirus pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain.

Against the backdrop of declining coronavirus revenue, wide-moat Thermo Fisher Scientific's third quarter was strong. The firm's core operations, buoyed by biopharma demand, grew 14% in the quarter, implying ongoing market share gains for the company. The outperformance led Thermo Fisher to slightly raise its annual guidance. We're maintaining our $590 fair value estimate and view shares as modestly undervalued.

Thermo Fisher didn’t just come out of the toughest year for the global economy unscathed, the company managed to deliver its best year ever despite challenges around the economy and spending budgets. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to be among the first to market with a reliable coronavirus test and at capacity needed to meet massive demand. The pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain, which has given us enough confidence in its ability to outearn its cost of capital for the next 20 years. We think Thermo Fisher is a wide-moat business.

Wide-moat Thermo Fisher Scientific delivered another robust quarter, driven by strength in its core business, better than expected performance in China, and resilient COVID-19 testing revenue that is not falling off as fast as we anticipated. We're modestly raising our fair value estimate to $590 per share. Shares are fairly valued

Not only did Thermo Fisher just come out of the toughest year for the global economy unscathed, but the company managed to deliver its best year ever despite challenges around the economy and spending budgets. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to be among the first to market with a reliable coronavirus test and at capacity needed to meet massive demand. The pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain, which has given us enough confidence in its ability to outearn its cost of capital for the next 20 years. We think Thermo Fisher is a wide-moat business.

Wide-moat Thermo Fisher Scientific kicked off 2021 with strong results across most segments, allowing the company to materially raise its revenue and earnings guidance for the full year. We are updating our model and expecting a modest raise in our fair value estimate, but we anticipate shares still trading at a premium to our valuation.

Wide-moat Thermo Fisher Scientific finished 2021 with strong results as the pandemic continues to demand additional testing requirements and vaccine materials globally. COVID-19 response revenue totaled $9.2 billion in the year, with $2.45 billion in the fourth quarter. We anticipate a modest increase to our $520 fair value estimate as we update our model to reflect 2021 results. Despite this expected increase, we continue to view the shares as moderately overvalued.

Thermo Fisher delivered strong results in the third quarter, with the delta variant surge propelling demand for testing across the globe. Pandemic response revenue of $2 billion in the quarter was above our estimates, and we anticipate raising our revenue projections for 2021 to match the company's adjusted guidance. Impressively, the firm also raised its 2022 revenue guidance on the strength of its core business. We expect a small upward adjustment to our fair value estimate but continue to view shares as overvalued. Thermo Fisher's wide moat rating is intact.

Thermo Fisher didn’t just come out of the toughest year for the global economy unscathed, the company managed to deliver its best year ever despite challenges around the economy and spending budgets. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to be among the first to market with a reliable coronavirus test and at capacity needed to meet massive demand. The pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain, which has given us enough confidence in its ability to outearn its cost of capital for the next 20 years. We think Thermo Fisher is a wide-moat business.

We anticipate a moderate increase to our fair value estimate of wide-moat Thermo Fisher Scientific as we update our model following the release of second-quarter results. Total revenue grew 34% year over year for the quarter to $9.27 billion, marking the fourth consecutive quarter of over 30% growth year over year. Revenue continues to be inflated due to the COVID-19 pandemic response, which accounted for $1.9 billion of total revenue. With the second quarter providing a strong close for the first half of the year, management is raising revenue and adjusted earnings per share guidance for fiscal 2021 to $35.90 billion and $22.07, respectively.

We are maintaining our fair value estimate for wide-moat Thermo Fisher Scientific following the release of first-quarter results. The company delivered strong performance, with healthy recovery in the base business (up 13% organically), supported by $2.9 billion in COVID-19 pandemic response revenue. The shares appear fairly valued at current levels.