The coronavirus pandemic and ongoing need for lab equipment used to test and analyze for Covid-19 helped propel Thermo Fisher Scientific's third-quarter earnings and revenue well past analysts' forecasts.
The Waltham, Mass.-based company posted third-quarter adjusted earnings of $2.25 billion, or $5.63 a share, vs. $1.19 billion, or $2.94 a share, in the comparable year-ago period. Analysts polled by FactSet had been expecting earnings of $4.33 a share.
Revenue jumped 36% to $8.52 billion, above the $6.27 billion it brought in a year ago and well above analysts’ forecasts of $7.6 billion. Adjusted operating income grew 97%, while adjusted operating margin increased to 32.9% from 22.7%.
Demand for Covid-related testing and other lab equipment that helps automate Covid-19 testing continued to boost Thermo Fisher’s profits during the quarter, CEO Marc Casper said in a statement accompanying the company’s earnings.
At the same time, “we're adding new capabilities, including scaling up production of sample collection products and essential laboratory supplies as well as increasing our pharma services capacity to support new therapies and vaccines,” Casper said, adding the company is on track to deliver a record year.
Thermo Fisher in March received emergency-use authorization from the Food and Drug Administration to market its diagnostic test for the coronavirus.
In July it received funding from the Biomedical Advanced Research and Development Authority to help Thermo Fisher expand its manufacturing capacity for sterile injectables used used to fill a high volume of vaccine doses.
Latest Videos From TheStreet and Jim Cramer:
- PPE and Your Portfolio: Inside a Disruptive Industry
- Jim Cramer Says Earnings Pinpoint Stocks to Buy With or Without Stimulus
- Coronavirus: The Latest Numbers on the COVID-19 Pandemic
- PPE in the Ring: How O2 Industries Partnered With UFC
- How Much Do World Series Tickets Cost in 2020?
- How to Protect Your Portfolio for Any Election Outcome
- PPE and the Supply Chain: How O2 Industries Adapted During Pandemic