Thermo Fisher Earnings: Delivers Healthy Margins Despite Revenue Pressure

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.