Thermo Fisher Scientific (TMO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $10.54 billion, down 1% year-over-year; adjusted operating income was $2.35 billion with a 22.3% margin, and adjusted EPS grew 4% to $5.37 per share, while GAAP EPS rose 15% to $4.04.

• Sequential improvement in growth across all four end markets, with share gains and strong execution.

• Innovation highlights included new mass spectrometry and sustainability-focused products, and expanded clinical trial supply services.

• Strategic expansion included the completed acquisition of Olink, enhancing proteomics capabilities, and new facilities in Europe, Asia Pacific, and the US.

• Organic revenue declined 1% in Q2, mainly due to lower COVID-19 related demand and a muted macroeconomic environment.

Financial highlights

• Adjusted EPS was $5.37, up 4% year-over-year; GAAP EPS was $4.04, up 15%.

• Q2 reported revenue declined 1% year-over-year, with organic revenue down 1% and a 1% FX headwind.

• Adjusted operating margin was 22.3%, up 10 bps year-over-year and 30 bps sequentially; GAAP operating margin improved to 17.3%.

• Free cash flow for Q2 was $1.67 billion, up from $1.26 billion in Q2 2023; six-month free cash flow was $2.58 billion, up from $1.54 billion year-over-year.

• Total assets at June 29, 2024 were $98.5 billion; total debt was $35.4 billion; cash and cash equivalents stood at $7.07 billion.

Outlook and guidance

• 2024 revenue guidance raised to $42.4–$43.3 billion; adjusted EPS guidance raised to $21.29–$22.07.

• Core organic revenue growth for 2024 expected between -1% and +1%.

• Adjusted operating income margin for 2024 expected between 22.5% and 22.8%.

• Free cash flow for 2024 projected at $6.5–$7 billion.

• GAAP effective tax rate for 2024 expected between 9% and 11%; adjusted tax rate around 10.5%.