Shares of Thermo Fisher Scientific (TMO) - Get Thermo Fisher Scientific Inc. Report jumped Friday afternoon after the laboratory diagnostics company that makes Covid-19 tests said it expects 12% revenue growth in 2022.
The company made the announcement at its investor day, saying that it expects revenue of $40.3 billion next year, up from the $35.9 billion it expects in 2021. Adjusted earnings for 2022 are expected to be $21.16 a share.
Analysts polled by FactSet are modeling for revenue of $36.2 billion in 2022 with adjusted earnings of $20.04 per share.
Thermo Fisher also reiterated its 2021 earnings expectation of $22.07 a share, which is below FactSet expectations of $22.17 per share.
In April, the company announced plans to buy PPD Inc., a leading clinical research organization, for $17.4 billion. At the time, the company said that it expected the deal to add $1.40 to its adjusted EPS in the first 12 months after the deal closed.
On Friday the company raised its expectations for the earnings boost from PPD to $1.50 per share.
Under the terms of the PPD Deal, Thermo Fisher Scientific will pay PPD shareholders $47.50 a share for a total cash purchase price of $17.4 billion plus the assumption of approximately $3.5 billion of debt.
The amount represents a premium of approximately 24% to PPD's closing price as of Tuesday, April 13. Upon close of the transaction, PPD will become part of Thermo Fisher's Laboratory Products and Services Segment, the companies said.
Shares of Waltham, Mass-based Thermo Fisher ended up 6.4% at $596.53 Friday.