Thermo Fisher Scientific (TMO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $10.6B, with adjusted operating income of $2.36B and adjusted EPS of $5.28; GAAP EPS was $4.25, and full-year adjusted EPS guidance was raised.

• Organic revenue growth was flat in Q3, offsetting a 3% headwind from pandemic-related revenue runoff; sequential improvement noted each quarter.

• Growth strategy emphasized innovation, trusted partnerships, and commercial wins, including new product launches and collaborations like the National Cancer Institute MyeloMATCH trial.

• Olink acquisition in July 2024 expanded proteomics capabilities and integration is progressing well.

• Disciplined capital deployment through M&A (Olink, Binding Site), share buybacks, and dividends supported value creation.

Financial highlights

• Q3 2024 revenue: $10.6B; adjusted operating income: $2.36B (22.3% margin); GAAP operating income: $1.84B (17.3% margin).

• Adjusted EPS: $5.28; GAAP EPS: $4.25; net income attributable to shareholders: $1.63B.

• Free cash flow for the first nine months of 2024 was $4.5B, up from $3.69B year-over-year.

• Adjusted gross margin: 41.8%, down 20 bps year-over-year.

• Weighted average diluted shares outstanding for Q3 2024 were 384M.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance raised to $21.35–$22.07; revenue guidance unchanged at $42.4B–$43.3B.

• Q4 implied revenue: $11.3B, adjusted EPS: $5.96, with 2.5% organic revenue growth expected.

• Core organic revenue growth for 2024 expected between -1% and +1%; market decline assumed low-single digits.

• Net interest costs expected at $340M–$380M; adjusted tax rate at 10.5%.

• Free cash flow for 2024 projected at $6.5B–$7B; capex expected at $1.3B–$1.5B.