Thermo Fisher Scientific Inc (NYSE:TMO). has demonstrated resilience in its Q3 2023 results, despite facing macroeconomic hurdles. The company reported a marginal 1% decrease in revenue to $10.57 billion, compared to $10.68 billion from the year-ago quarter, falling slightly short of the $10.6 billion forecast.
In contrast, Thermo Fisher's GAAP diluted EPS saw a 17% increase to $4.42, up from the previous year's $3.79 per share. The company also posted a profit rise to $1.72 billion for the quarter, compared to the year-ago quarter's $1.50 billion.
The company's adjusted EPS rose by 12% to $5.69, surpassing analysts' expectation of $5.61 per share. The GAAP operating income was reported at $1.86 billion with a margin of 17.6%, while the adjusted operating income stood at $2.56 billion with a margin of 24.2%.
This financial performance was driven by a GAAP operating margin expansion of 160 basis points and an adjusted operating margin expansion of 200 basis points. Core organic revenue, excluding acquisitions, foreign currency effects, and $500,000 from Covid testing revenue, saw a 1% increase.
In addition to its financial results, Thermo Fisher announced the acquisition of Olink Holding AB for $3.1 billion as part of its strategy to boost scientific research and strengthen its mass spectrometry and life sciences offerings.
Following these results, Thermo Fisher has revised its forecast for 2023. The company now expects a revenue of $42.7 billion, signaling 1% core organic revenue growth, and an adjusted EPS of $21.50.
CEO Marc Casper commended the team's execution amidst a challenging market environment, leading to substantial margin expansion and adjusted EPS growth.
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