TMO - Embedded Expectations Analysis - 2020 03 13
ï€ Thermo Fisher Scientific Inc. (TMO:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 23.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is excited about their deal with Labcorp, and confident about their performance and positioningï€ Specifically, management generated excitement markers when saying their agreement with LabCorp is a nice win for both companies, they will gain more clarity on the extent of their market share gains as competitors release their earnings, and that funds for their capital equipment investment in China will be released throughout the course of the year. Moreover, they are confident they had 6% organic revenue growth and that they had strong H1 2019 performance in their industrial and applied businesses. In addition, they are confident about their strong positioning to create shareholder value and that their contract extension with PCT partners will create extensive revenue streams in their test franchise for years to come
Thermo Fisher Scientific is engaged in serving science. The company's segments include: Life Sciences Solutions, which provides reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines as well as diagnosis of disease; Analytical Instruments, which provides instruments, consumables, software and services that are used for a range of applications in the laboratory, on the production line and in the field; and Specialty Diagnostics, which provides diagnostic test kits, reagents, culture media, instruments and associated products for customers in healthcare, clinical, pharmaceutical, industrial, and food safety laboratories.
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