Here's What Analysts Are Forecasting For Thermo Fisher Scientific Inc. (NYSE:TMO) After Its Yearly Results

Thermo Fisher Scientific Inc. (NYSE:TMO) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of US$43b and statutory earnings per share of US$15.45 both in line with analyst estimates, showing that Thermo Fisher Scientific is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Thermo Fisher Scientific

Following last week's earnings report, Thermo Fisher Scientific's 23 analysts are forecasting 2024 revenues to be US$43.0b, approximately in line with the last 12 months. Per-share earnings are expected to rise 6.3% to US$16.50. In the lead-up to this report, the analysts had been modelling revenues of US$42.9b and earnings per share (EPS) of US$15.01 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$585, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Thermo Fisher Scientific analyst has a price target of US$650 per share, while the most pessimistic values it at US$520. This is a very narrow spread of estimates, implying either that Thermo Fisher Scientific is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Thermo Fisher Scientific's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Thermo Fisher Scientific is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Thermo Fisher Scientific following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Thermo Fisher Scientific's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$585, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Thermo Fisher Scientific. Long-term earnings power is much more important than next year's profits. We have forecasts for Thermo Fisher Scientific going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Thermo Fisher Scientific you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.