Thermo Fisher Scientific (NYSE:TMO) dropped over 6% in pre-market Wednesday after the supplier of analytical instruments and medical equipment reported weaker-than-expected Q2 results and lowered its full-year outlook.
TMO reported Q2 EPS of $5.15 on revenue of $10.69 billion, missing the average analyst estimate for a profit per share of $5.43 on revenue of $10.99B. Sales fell 2.6% year-over-year as the company suffered a 25% YoY plunge in sales for its Life Sciences business segment.
“The macroeconomic environment became more challenging in the second quarter. Economic activity in China slowed, and across the economy more broadly, businesses became more cautious in their spend,” said Marc Casper, chairman, president and chief executive officer of Thermo Fisher Scientific.
“The team is leveraging our PPI Business System to effectively manage through this dynamic environment.”
The company’s operating margin contracted by 150 basis points to 22.2%, missing the 22.7% consensus.
As a result, TMO cut its full-year forecast. It now expects EPS of $22.50 on revenue of $43.7B, missing the consensus for EPS of $23.55 on revenue of $45.21B.