Thermo Fisher Scientific Inc. (NYSE:TMO) Just Released Its First-Quarter Earnings: Here's What Analysts Think

It's been a good week for Thermo Fisher Scientific Inc. (NYSE:TMO) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.3% to US$574. Thermo Fisher Scientific reported US$10b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.46 beat expectations, being 4.8% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Thermo Fisher Scientific

Taking into account the latest results, Thermo Fisher Scientific's 26 analysts currently expect revenues in 2024 to be US$43.1b, approximately in line with the last 12 months. Per-share earnings are expected to rise 3.1% to US$16.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$43.0b and earnings per share (EPS) of US$16.38 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$618. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Thermo Fisher Scientific, with the most bullish analyst valuing it at US$677 and the most bearish at US$540 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Thermo Fisher Scientific's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.4% annually. 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 to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Thermo Fisher Scientific analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Thermo Fisher Scientific that you need to be mindful of.

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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.