Thermo Fisher Scientific stock experienced a decline on Wednesday following lower-than-expected sales in the third quarter. As a leading market player in laboratory equipment and analytical instruments, Thermo Fisher reported earnings of $5.69 per share on revenue of $10.57 billion for the three-month period ending in September. Although analysts predicted earnings of $5.61 per share on revenue of $10.6 billion, the company fell just short of these expectations. However, the real cause for concern lies elsewhere.
Thermo Fisher cited a challenging macroeconomic environment as the reason behind slashing its earnings and sales guidance for the second consecutive quarter. The latest guidance for 2023 predicts earnings per share of $21.50 on revenue of $42.7 billion. This comes as a significant decrease from July's projections, where earnings were anticipated to reach as high as $22.72 per share on revenue of up to $44 billion. This adjustment represents a downgrade from the April guidance of profit at $23.70 per share on revenue of $45.3 billion.
Despite the weakening market conditions in the third quarter, Marc Casper, the Chairman and CEO of Thermo Fisher, expressed satisfaction with the team's execution, resulting in excellent margin expansion and growth in adjusted earnings per share. Casper emphasized continued investment for the future, highlighting the recent announcement of Thermo Fisher's agreement to acquire Olink.
In April, Thermo Fisher was a top stock pick, but as of Tuesday's close, its shares have fallen by 16%.
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