Market Overview

Thermo Fisher Scientific's Earnings: A Preview

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On Wednesday, October 21, Thermo Fisher Scientific (NYSE: TMO) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income And Earnings Per Share (EPS)?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Thermo Fisher Scientific modeled for quarterly EPS of $4.31 on revenue of $7.65 billion. In the same quarter last year, Thermo Fisher Scientific announced EPS of $2.94 on revenue of $6.27 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Many of the Wall Street analysts who study this company will publish an analyst estimate of its revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates," and these consensus estimates can have a significant effect on a company's performance when it releases earnings. When a company posts earnings or revenue above or below the consensus estimate, it has posted an "earnings surprise."

If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 46.6%. Revenue would be up 21.97% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 2.84 2.79 3.54 2.87
EPS Actual 3.89 2.94 3.55 2.94
Revenue Estimate 6.13 B 6.17 B 6.78 B 6.18 B
Revenue Actual 6.92 B 6.23 B 6.83 B 6.27 B

Stock Performance

Shares of Thermo Fisher Scientific were trading at $461.28 as of October 19. Over the last 52-week period, shares are up 57.43%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Thermo Fisher Scientific is scheduled to hold the call at 08:30:00 ET and can be accessed here: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Fir.thermofisher.com%2Finvestors%2Fnews-and-events%2Fwebcasts-and-presentations%2Fevent-details%2F2020%2FQ3-2020-Thermo-Fisher-Scientific-Earnings-Conference-Call%2Fdefault.aspx&eventid=2395276&sessionid=1&key=E3F3C722007225D205F5D122BE8B15DB&regTag=&sourcepage=register

 

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