Thermo Fisher Takes Q1 Hit From Fall In Life Sciences Segment, Misses Street Expectation

Thermo Fisher Scientific Inc (NYSE: TMO) has posted Q1 revenue of $10.71 billion, down 9% Y/Y, beating the consensus of $10.67 billion.

Organic revenue was 8% lower, Core organic revenue growth was 6%, and COVID-19 testing revenue was $0.14 billion.

Revenue from Life Sciences Solutions Segment declined by 38.3% to $2.6 billion. Analytical Instruments Segment sales were up 13.5% to $1.72 billion. 

Specialty Diagnostics Segment revenues decreased by 25.2% to $1.12 billion, and Laboratory Products and Biopharma Services segment sales were up 5.9% to $5.76 billion.

Adjusted EPS of $5.03 versus $7.25 a year ago is in line with the consensus. Adjusted operating margin contracted from 21.8% to 29.2%.

Last month, Thermo Fisher Scientific and the University of California, San Francisco (UCSF) announced to accelerate advanced cell therapies for conditions, including cancer, rare diseases, and other illnesses, from a newly opened cGMP manufacturing facility adjacent to UCSF Medical Center's Mission Bay campus.

UCSF's initial focus at the facility will be on treatments for glioblastoma, multiple myeloma, and other cancers using updated approaches to CAR-T and CRISPR technologies. Therapies for other difficult-to-treat conditions will follow.

Price Action: TMO shares are down 4.78% at $522.39 on the last check Wednesday.