Thermo Fisher beats 3Q net income expectations, lowers 2014 revenue forecast
Thermo Fisher Scientific Inc. topped analyst expectations for the third quarter, but its stock slid Wednesday after the scientific instrument maker also lowered its 2014 revenue forecast below Wall Street expectations and tightened its earnings outlook.
The Waltham, Massachusetts company said unfavorable currency exchange rates prompted it to lower its 2014 revenue forecast to $16.74 billion to $16.82 billion from previous guidance for $16.86 billion to $16.98 billion. Thermo Fisher now expects $6.87 to $6.95 per share in earnings, after previously forecasting $6.85 to $6.97 per share.
Analysts forecast, on average, earnings of $6.92 per share on $16.9 billion in revenue, according to FactSet
For the third quarter, Thermo Fisher earned $471.6 million, or $1.17 per share. Earnings, adjusted for one-time items, came to $1.71 per share.
The results surpassed Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.69 per share.
The company posted revenue of $4.17 billion in the period, which missed Street forecasts. Analysts expected $4.23 billion, according to Zacks.
Thermo Fisher share slid 4.2 percent, or $4.96, to $113.26 in afternoon trading while broader indexes were nearly flat. The stock had climbed 6 percent so far this year, as of Tuesday's close, while the Standard & Poor's 500 index had risen 5 percent.