Thermo Fisher Scientific Inc. (TMO) Bundle
A Brief History of Thermo Fisher Scientific Inc.
Thermo Fisher Scientific Inc. has established itself as a leader in the life sciences industry, providing analytical instruments, equipment, reagents, and consumables for various sectors including pharmaceuticals, biotechnology, academic research, and diagnostics. The company's growth trajectory has been marked by strategic acquisitions and robust financial performance.
Recent Financial Performance (2024)
As of September 28, 2024, Thermo Fisher reported total revenues of $10.598 billion for the third quarter, reflecting a 0% change compared to the previous year. For the first nine months of 2024, total revenues stood at $31.484 billion, down 2% from $31.971 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Revenues | $10.598 billion | $10.574 billion | 0% | $31.484 billion | $31.971 billion | -2% |
| GAAP Operating Income | $1.838 billion | $1.864 billion | -1% | $5.321 billion | $5.005 billion | 6% |
| Net Income | $1.630 billion | $1.715 billion | -5% | $4.505 billion | $4.365 billion | 3% |
| Diluted EPS | $4.25 | $4.42 | -4% | $11.75 | $11.25 | 4% |
Segment Performance
The revenues from Thermo Fisher’s segments for the third quarter of 2024 were as follows:
| Segment | Q3 2024 Revenues | Q3 2023 Revenues | Change |
|---|---|---|---|
| Life Sciences Solutions | $2.387 billion | $2.433 billion | -2% |
| Analytical Instruments | $1.808 billion | $1.754 billion | 3% |
| Specialty Diagnostics | $1.129 billion | $1.083 billion | 4% |
| Laboratory Products and Biopharma Services | $5.740 billion | $5.728 billion | 0% |
Recent Acquisitions
Thermo Fisher has enhanced its market position through several key acquisitions:
- Acquired The Binding Site Group on January 3, 2023, enhancing its specialty diagnostics portfolio.
- Acquired CorEvitas, LLC on August 14, 2023, to augment its real-world evidence solutions.
- Acquired Olink Holding AB on July 10, 2024, focusing on next-generation proteomics solutions.
Liquidity and Capital Resources
As of September 28, 2024, Thermo Fisher reported:
- Cash and cash equivalents: $4.645 billion
- Total debt: $35.313 billion
The company generated free cash flow of $1.915 billion in Q3 2024, down from $2.148 billion in Q3 2023.
Outlook
Thermo Fisher anticipates its GAAP effective tax rate for 2024 to be between 8% and 10%, with an adjusted tax rate around 10.5%. The company continues to focus on strategic investments to bolster its growth amidst a challenging macroeconomic landscape.
Overall, Thermo Fisher Scientific Inc. remains committed to its mission of enabling customers to make the world healthier, cleaner, and safer through innovation and strategic growth initiatives.
A Who Owns Thermo Fisher Scientific Inc. (TMO)
Major Shareholders
As of 2024, the ownership of Thermo Fisher Scientific Inc. (TMO) is distributed among various institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.12% | 36,000,000 |
| BlackRock, Inc. | 7.56% | 33,500,000 |
| State Street Corporation | 4.85% | 21,500,000 |
| FMR LLC (Fidelity Investments) | 4.25% | 19,000,000 |
| Capital Research Global Investors | 3.80% | 17,000,000 |
| Other Institutional Investors | 35.00% | 156,000,000 |
| Insider Ownership | 1.50% | 6,500,000 |
Insider Ownership
Insider ownership at Thermo Fisher Scientific Inc. includes shares held by executives and board members. The total insider ownership is approximately 1.50%, equating to about 6,500,000 shares.
Institutional Ownership Trends
Institutional investors dominate the ownership structure of Thermo Fisher Scientific, comprising approximately 64.00% of total shares. The following table details the percentage of institutional ownership over the past few years:
| Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 60.00% |
| 2022 | 62.50% |
| 2023 | 63.50% |
| 2024 | 64.00% |
Stock Performance and Market Capitalization
As of September 28, 2024, Thermo Fisher Scientific's stock price is approximately $420.00, providing a market capitalization of around $186 billion.
Recent Share Repurchase Activity
During the first nine months of 2024, Thermo Fisher Scientific repurchased approximately 5.5 million shares of its common stock, totaling $3.00 billion under its stock repurchase program.
Dividends
In 2024, Thermo Fisher Scientific declared dividends amounting to $1.17 per share, resulting in total dividend payments of approximately $448 million for the year.
Conclusion of Ownership Structure
The ownership of Thermo Fisher Scientific Inc. is characterized by significant institutional investment, with the largest shareholders being Vanguard, BlackRock, and State Street. The trend shows a steady increase in institutional ownership, reflecting confidence in the company’s long-term prospects.
Thermo Fisher Scientific Inc. (TMO) Mission Statement
As of 2024, Thermo Fisher Scientific Inc. aims to enable customers to make the world healthier, cleaner, and safer. The company focuses on accelerating life sciences research, solving complex analytical challenges, increasing laboratory productivity, and improving patient health through diagnostics and the development of life-changing therapies. Thermo Fisher serves various markets including pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics.
Financial Overview
In the third quarter of 2024, Thermo Fisher reported consolidated revenues of $10.598 billion, comparing closely with $10.574 billion in the same quarter of 2023, representing a minimal increase of 0.2%. However, for the first nine months of 2024, total revenues were $31.484 billion, a decrease of 2% from $31.971 billion in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Revenues | $10.598 billion | $10.574 billion | +0.2% | $31.484 billion | $31.971 billion | -2% |
| GAAP Operating Income | $1.838 billion | $1.864 billion | -1% | $5.321 billion | $5.005 billion | +6% |
| GAAP Operating Income Margin | 17.3% | 17.6% | -0.3 pt | 16.9% | 15.7% | +1.2 pt |
| Adjusted Operating Income | $2.362 billion | $2.560 billion | -8% | $6.987 billion | $7.260 billion | -4% |
Segment Performance
Thermo Fisher operates through four main segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services. Each segment has shown distinct revenue trends in the third quarter of 2024 compared to the same period in 2023.
| Segment | Q3 2024 Revenues | Q3 2023 Revenues | Change |
|---|---|---|---|
| Life Sciences Solutions | $2.387 billion | $2.433 billion | -2% |
| Analytical Instruments | $1.808 billion | $1.754 billion | +3% |
| Specialty Diagnostics | $1.129 billion | $1.083 billion | +4% |
| Laboratory Products and Biopharma Services | $5.740 billion | $5.728 billion | +0.2% |
Cash Flow and Expenditures
In terms of cash flow, Thermo Fisher generated $5.377 billion from operating activities during the first nine months of 2024, an increase from $4.683 billion in the same period of 2023. However, the company reported net cash used in investing activities of $5.861 billion, compared to $4.766 billion in the previous year.
| Cash Flow Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $5.377 billion | $4.683 billion |
| Net Cash Used in Investing Activities | ($5.861 billion) | ($4.766 billion) |
| Free Cash Flow | $4.498 billion | $3.685 billion |
Tax and Earnings
For the first nine months of 2024, Thermo Fisher's net income was $4.514 billion, compared to $4.349 billion in the same period of 2023. The diluted earnings per share (EPS) attributable to Thermo Fisher Scientific Inc. for Q3 2024 was $4.25, down from $4.42 in Q3 2023.
| Earnings Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $1.630 billion | $1.715 billion |
| Net Income (9M) | $4.514 billion | $4.349 billion |
| Diluted EPS | $4.25 | $4.42 |
How Thermo Fisher Scientific Inc. (TMO) Works
Business Segments
Thermo Fisher Scientific operates through four primary segments:
- Life Sciences Solutions
- Analytical Instruments
- Specialty Diagnostics
- Laboratory Products and Biopharma Services
Financial Performance
For the third quarter of 2024, Thermo Fisher reported consolidated revenues of $10,598 million, slightly up from $10,574 million in the same period in 2023. The year-to-date revenues for the first nine months of 2024 were $31,484 million compared to $31,971 million for the same period in 2023, indicating a decline of 2%.
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | 9M 2024 Revenues (in millions) | 9M 2023 Revenues (in millions) |
|---|---|---|---|---|
| Life Sciences Solutions | 2,387 | 2,433 | 7,027 | 7,508 |
| Analytical Instruments | 1,808 | 1,754 | 5,277 | 5,226 |
| Specialty Diagnostics | 1,129 | 1,083 | 3,355 | 3,300 |
| Laboratory Products and Biopharma Services | 5,740 | 5,728 | 17,221 | 17,322 |
| Eliminations | (467) | (424) | (1,397) | (1,385) |
| Total | 10,598 | 10,574 | 31,484 | 31,971 |
Segment Income
Segment income and margins for the third quarter of 2024 showed varied results across the business segments:
| Segment | Q3 2024 Segment Income (in millions) | Q3 2023 Segment Income (in millions) | 9M 2024 Segment Income (in millions) | 9M 2023 Segment Income (in millions) |
|---|---|---|---|---|
| Life Sciences Solutions | 845 | 872 | 2,551 | 2,525 |
| Analytical Instruments | 451 | 468 | 1,289 | 1,321 |
| Specialty Diagnostics | 293 | 283 | 886 | 860 |
| Laboratory Products and Biopharma Services | 773 | 937 | 2,262 | 2,554 |
| Total Segment Income | 2,362 | 2,560 | 6,987 | 7,260 |
Income and Expenses
Thermo Fisher's GAAP operating income for Q3 2024 was $1,838 million, down from $1,864 million in Q3 2023. The nine-month operating income for 2024 was $5,321 million compared to $5,005 million in 2023.
Net Income and Earnings Per Share
Net income attributable to Thermo Fisher for Q3 2024 was $1,630 million, translating to a diluted earnings per share (EPS) of $4.25. For the nine months ended September 28, 2024, net income was $4,505 million with a diluted EPS of $11.75.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | 1,630 | 1,715 | 4,505 | 4,365 |
| Diluted EPS | 4.25 | 4.42 | 11.75 | 11.25 |
Cash Flow and Capital Expenditures
For the nine months ending September 28, 2024, Thermo Fisher generated $5,377 million in net cash provided by operating activities, while net cash used in investing activities was $5,861 million, primarily due to acquisitions and capital expenditures.
| Cash Flow Activity | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | 5,377 | 4,683 |
| Net Cash Used in Investing Activities | (5,861) | (4,766) |
| Net Cash Used in Financing Activities | (3,126) | (2,194) |
| Free Cash Flow | 4,498 | 3,685 |
Debt Structure
As of September 28, 2024, Thermo Fisher had total debt of $35,313 million. The effective tax rate for the company in 2024 is expected to be between 8% and 10%.
| Debt Instrument | Amount (in millions) | Effective Interest Rate | Due Date |
|---|---|---|---|
| 3-Year Senior Notes | 2,500 | 1.39% | 10/18/2024 |
| 10-Year Senior Notes | 714 | 2.09% | 4/15/2025 |
| 5-Year Senior Notes | 600 | 5.00% | 11/21/2027 |
| 12-Year Senior Notes | 1,674 | 1.20% | 10/18/2033 |
| Total Debt | 35,313 |
How Thermo Fisher Scientific Inc. (TMO) Makes Money
Business Segments
Thermo Fisher Scientific operates through four primary segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services.
Revenue Breakdown
For the third quarter of 2024, the revenue distribution across segments was as follows:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Life Sciences Solutions | 2,387 | 2,433 | -2% |
| Analytical Instruments | 1,808 | 1,754 | 3% |
| Specialty Diagnostics | 1,129 | 1,083 | 4% |
| Laboratory Products and Biopharma Services | 5,740 | 5,728 | 0% |
| Total Revenues | 10,598 | 10,574 | 0% |
Segment Income
Segment income for Q3 2024 was reported as follows:
| Segment | Q3 2024 Segment Income (in millions) | Q3 2023 Segment Income (in millions) | Change (%) |
|---|---|---|---|
| Life Sciences Solutions | 845 | 872 | -3% |
| Analytical Instruments | 451 | 468 | -4% |
| Specialty Diagnostics | 293 | 283 | 3% |
| Laboratory Products and Biopharma Services | 773 | 937 | -18% |
| Total Segment Income | 2,362 | 2,560 | -8% |
Financial Performance
In the first nine months of 2024, Thermo Fisher Scientific reported consolidated revenues of $31,484 million, a decrease from $31,971 million in the same period in 2023.
The operating income for the first nine months of 2024 was $5,321 million, compared to $5,005 million in the same period of 2023, reflecting a 6% increase. The adjusted operating income margin was 22.3% for Q3 2024, down from 24.2% in Q3 2023.
Cost Structure
For Q3 2024, the costs and operating expenses were as follows:
| Category | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Cost of Product Revenues | 3,170 | 3,214 |
| Cost of Service Revenues | 3,100 | 3,044 |
| Selling, General and Administrative Expenses | 2,098 | 2,049 |
| Research and Development Expenses | 346 | 319 |
| Total Costs and Operating Expenses | 8,759 | 8,710 |
Cash Flow and Investments
During the first nine months of 2024, Thermo Fisher generated net cash provided by operating activities amounting to $5,377 million, while cash used in investing activities was $5,861 million, primarily for acquisitions and capital expenditures.
Free cash flow for the same period was reported at $4,498 million, compared to $3,685 million in the first nine months of 2023.
Debt and Financing Activities
As of September 28, 2024, total debt stood at $35,313 million, with cash and cash equivalents of $4,645 million. The company’s financing activities included the issuance of debt that provided $1.20 billion of cash and the repurchase of $3.00 billion of company common stock.
Market Conditions and Future Outlook
In 2024, Thermo Fisher has been navigating a challenging macroeconomic environment, with notable declines in demand for COVID-19 related products impacting several business segments. The company continues to focus on high-impact innovation and enhancing its commercial capabilities to drive future growth.
Thermo Fisher Scientific Inc. (TMO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Thermo Fisher Scientific Inc. (TMO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Thermo Fisher Scientific Inc. (TMO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Thermo Fisher Scientific Inc. (TMO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.