WASHINGTON (dpa-AFX) - Laboratory equipment maker Thermo Fisher Scientific Inc (TMO) Wednesday reported higher third-quarter profit, reflecting increased revenues mainly due to acquisition of Life Technologies. Adjusted earnings topped analysts' expectations, but revenues came in below view.
The company tightened its full-year adjusted earnings outlook, and lowered its revenue view.
For the three months to September, net income increased to $471.6 million or $1.17 per share from $317.6 million or $0.86 per share in the prior year. Results reflect a gain from sale of Cole-Parmer in the 2014 quarter.
Excluding items, adjusted earnings per share were $1.71, while the company posted $1.30 per share a year ago.
On average, 16 analysts polled by Thomson-Reuters expected the company to earn $1.69 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter climbed 31 percent to $4.17 billion from $3.19 billion in 2013, but came in below analysts' estimate of $4.21 billion.
Organic revenue grew 4 percent, with acquisitions, net of divestitures, increasing revenue by 27 percent. Currency translation had a negligible effect.
The company noted that integration of Life Technologies is going very well.
Marc Casper, president and chief executive officer said, 'We launched a number of new products during the quarter to strengthen our leadership position in the key markets we serve...We're also successfully executing our strategy to expand the markets for our next-generation sequencing technologies...'
Thermo Fisher narrowed its annual adjusted earnings guidance to $6.87 to $6.95 per share from prior guidance range of $6.85 to $6.97 per share.
For the full year, the company lowered its revenue outlook to $16.74 billion to $16.82 billion, from $16.86 billion to $16.98 billion projected earlier. Analysts expect earnings of $6.92 per share, on revenues of $16.89 billion for 2014.
TMO closed Tuesday's trading at $118.22, up 3.40 percent.
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