Thermo Fisher Scientific Inc. reports financial results for the second quarter ended June 29, 2013
Second Quarter 2013 Highlights
- Adjusted earnings per share (EPS) grew 8% to a second quarter record of $1.32
- Revenue increased 4% to $3.24 billion, a second quarter record
- Adjusted operating margin expanded 30 basis points to 19.3%
“We delivered another solid quarter, with good performance on the top and bottom line,” said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific.
“It was a stand-out quarter for innovation, highlighted by our industry-leading mass spectrometry launches at ASMS. We unveiled three new-generation Thermo Scientific platforms — the breakthrough Orbitrap Fusion Tribrid, and the Quantiva and Endura triple quads — to provide a broad set of customers with exceptional levels of performance, speed and ease of use. We also continued to strengthen our R&D capabilities in Asia-Pacific by establishing our new China Innovation Center in Shanghai — another example of our focus on innovating to meet our customers’ needs.
“In terms of our pending acquisition of Life Technologies, I’m pleased to report that the integration planning teams are making great progress. We’re excited about the opportunities ahead and look forward to closing the transaction early in 2014.”
Second Quarter 2013
For the second quarter of 2013, adjusted EPS grew 8% to a record $1.32, versus $1.22 in the second quarter of 2012. Revenue for the quarter grew 4% to $3.24 billion in 2013, versus $3.11 billion in 2012. Organic revenue growth was 2%, with acquisitions increasing revenue by 2% and currency translation having a nominal negative impact. Adjusted operating income for the second quarter of 2013 increased 6% compared with the year-ago period, and adjusted operating margin expanded to 19.3%, compared with 19.0% in the second quarter of 2012.
GAAP diluted EPS for the second quarter of 2013 was $0.76, versus $0.63 in the same quarter last year. The 2012 quarter included charges for discontinued operations. GAAP operating income for the second quarter of 2013 increased 2% to $375 million, compared with $368 million in 2012. GAAP operating margin was 11.6%, compared with 11.8% in the second quarter of 2012.
Guidance for 2013
Casper added, “We’re pleased to deliver a solid first half, which keeps us on track to achieve our growth goals for the full year.”
Thermo Fisher is updating its full year revenue guidance to a new range of $12.83 to $12.95 billion from its previous range of $12.84 to $13.00 billion, reflecting increased headwinds from currency exchange rates. This results in 3% to 4% revenue growth over 2012, consistent with previous guidance. The company is also updating its adjusted EPS guidance for the full year, raising the low end by $0.02 to a new range of $5.29 to $5.39, primarily reflecting solid operating performance, partially offset by the impact of currency exchange and a slightly higher share count. Consistent with previous guidance, adjusted EPS growth remains at 7% to 9% over the prior year.
The 2013 guidance does not include the pending acquisition of Life Technologies or the impact of related financing activities. As previously stated, the guidance does not include any other future acquisitions or divestitures, and is based on current foreign exchange rates. In addition, the adjusted EPS estimate excludes amortization expense for acquisition-related intangible assets and certain other items detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”