Thermo Fisher Scientific Inc.


TMO

is slated to release second-quarter 2022 results on Jul 28, before market open.

In the last reported quarter, Thermo Fisher’s earnings of $7.25 per share exceeded the Zacks Consensus Estimate by 17.5%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.94%.

Let’s discuss the factors that are likely to get reflected in the upcoming results.

Factors at Play

Through the months of the second quarter, Thermo Fisher’s

Analytical Instruments

segment is expected to have generated strong sales, banking on electron microscopy, chromatography, mass spectrometry, chemical analysis as well as the research and safety market channel businesses. The company is expected to report growth driven by a favorable business mix and new launches including four new gas chromatography and GC-MS instruments to advance analytical testing for food, environmental, industrial, and pharmaceutical applications.

Further, in terms of performance in high-growth and emerging markets, in Beijing, the National Institute of Biological Sciences has started to use mass spectrometers to accelerate its research in structural biology. In Korea, electron microscopes are enabling researchers at Pusan National University to establish a bioimaging center to accelerate virus research. These two developments are expected to have contributed to the company’s revenues in Q2.

However the negative impact of COVID-19 in the form of supply issues and staffing shortages are expected to have deterred growth in a few areas within this business.

Within the

Life-Science Solutions

segment, with the emergence of the new virus variants, through the months of the second quarter globally, this segment is likely to have also registered top-line contributions, thanks to rising demand for COVID-19 testing. This is expected to have accelerated COVID-response revenue growth within this segment compared with Q1.

Further, in bioproduction, the newly-launched Gibco CTS Xenon electroporation system for the efficient delivery of genetic material into cells as part of cell therapy manufacturing, should contribute to the Q2 top line.

The

Specialty Diagnostics

segment (Clinical Diagnostics business from the molecular controls that go into testing kits) is expected to have registered positive contributions in the form of continued growth in the immunodiagnostics and transplant diagnostics businesses. Looking at the consistently growing resurgence of the virus-led healthcare needs, the Microbiology, Healthcare Market Channel and Clinical Diagnostics businesses are expected to have witnessed strong growth in Q2. More specifically, the company’s strong underlying growth in the healthcare market channel, transplant diagnostics, and clinical diagnostics businesses are expected to have contributed to the to-be-reported quarter’s top line.

Within the

Laboratory Products and Services

segment, the company is expected to have gained from strong productivity and volume leverage within the pharma services business and the research and safety market channel. Also, the PPD business in the research and safety market channel as well as plastics used in testing workflows and cold storage equipment manufactured by the lab products business are expected to have generated strong sales growth in the second quarter.

Q2 Estimates

The Zacks Consensus Estimate for total revenues of $9.86 billion for the second quarter suggests a 6.3% rise from the prior-year quarter’s reported figure. The consensus mark for earnings of $4.91 per share indicates a 12.3% decline from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts

Per our proven model, stocks with the combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is not the case as you can see:

Earnings ESP:

Thermo Fisher has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank:

The company currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

BrainsWay Ltd.


BWAY

has an Earnings ESP of +33.33% and a Zacks Rank of 2. You can see


the complete list of today’s Zacks #1 Rank stocks here.

BrainsWay’s 2023 earnings growth rate is estimated to be 16.7%. BWAY’s 2023 revenues are expected to growth 17.1% from 2022.

Alcon Inc.


ALC

has an Earnings ESP of +5.07% and a Zacks Rank of #2.

Alcon long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.41% compares favorably with the industry’s (8.09%).

QuidelOrtho Corporation


QDEL

currently has an Earnings ESP of +9.17% and a Zacks Rank of #2.

QDEL’s earnings yield of 14.83% compares favorably with the industry’s (-2.63%).

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research