Shares of Thermo Fisher Scientific (TMO) - Get Thermo Fisher Scientific Inc. Report were dropping Thursday even after the life sciences company more than doubled adjusted first-quarter earnings on a 59% increase in revenue.
Shares of the Waltham, Mass., company fell 3.5% to $469 at last check.
Thermo Fisher reported adjusted net income of $7.21 a share, compared to $2.94 a share in the year-ago period. Revenue rose 59% to $9.9 billion from $6.23 billion in the same period a year ago.
Analysts polled by FactSet were expecting the company to report adjusted earnings of $6.67 on revenues of $9.7 billion.
"We are off to an excellent start to the year. Market conditions are strong, and our team is executing at an incredibly high level. From a financial perspective, we again delivered exceptional growth in revenue, earnings and free cash flow for the quarter," said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher, in a statement.
Sales at its life sciences solutions segment tripled to $4.2 billion from $1.7 billion in the year-ago period.
"We began accelerating our investments in talent, capabilities and capacity in the second half of 2020 and we are already starting to see the benefits of those actions," Casper said.
Casper added, "I am also very excited about our recently announced agreement to acquire PPD, Inc. This is a great fit for our company and will strengthen our value proposition for our largest and fastest-growing end market, provide exciting career opportunities for our colleagues, and create significant shareholder value."
On April 15 Thermo Fisher agreed to acquire healthcare testing company PPD (PPD) for $17.4 billion in cash, creating one of the biggest drug-testing companies in the U.S.