Thermo Fisher profit beats estimates on vaccine-making demand surge
Reuters
Published Apr 29, 2021 06:15AM ET
Updated Apr 29, 2021 08:35AM ET
(Reuters) -Thermo Fisher Scientific Inc beat first-quarter profit estimates on Thursday boosted by revenue at its life sciences unit, which makes raw materials used in COVID-19 vaccines, offsetting slowing demand for tests that detect the coronavirus.
As vaccinations gain steam across the globe, diagnostic companies like Abbott Laboratories (NYSE:ABT) have seen demand easing for some of its COVID-19 tests, stoking fears of slowing growth for the business.
Sales at Thermo Fisher (NYSE:TMO)'s specialty diagnostics unit, which makes tests for COVID-19, rose 68.6% to $1.62 billion, but missed analyst estimates of $1.83 billion.
The world's largest scientific instruments maker said first-quarter revenue in its life sciences segment rose to $4.20 billion from $1.77 billion a year earlier, a jump of 137%, beating analysts' average estimate of $4.16 billion.
Thermo Fisher in March said it would work with Pfizer Inc (NYSE:PFE) and BioNtech SE to produce their COVID-19 vaccine in Italy.
Excluding items, the company earned $7.21 per share in the quarter, above Wall Street expectations of $6.45 per share, according to Refinitiv IBES data.
The company said net income rose to $2.34 billion, or $5.88 per share, for the three months to April 3, from $788 million, or $1.97 per share, a year earlier.
Thermo Fisher's quarterly revenue rose 59% to $9.91 billion, above Wall Street estimates of $9.72 billion.
Shares of the company were trading down 1.2% at $479 before the bell.
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Written By: Reuters
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