Thermo Fisher Earnings: Revenue Under Pressure but in Line With Expectations

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.