Thermo Fisher Scientific Inc's upbeat first-quarter sales were overshadowed by soft demand in its life sciences unit, sending the medical equipment maker's shares down 4% in premarket trading on Wednesday.
Sales in its life sciences unit, which makes tools and compounds used to make therapeutics and vaccines, came in at $2.61 billion, missing analysts' average estimate of $2.92 billion.
The company reported weak life sciences segment revenue a day after rival Danaher Corp trimmed its annual sales growth forecast and flagged weak demand for its bioprocessing tools and services as the sector grapples with a funding crunch.
Thermo Fisher has benefited from demand for lab equipment including COVID-19 testing tools during the pandemic years, but with the U.S. public health emergency status set to expire next month, the company's COVID-related business faces uncertainties.
However, strong sales in its largest unit which provides contract manufacturing services helped drive better-than-expected total revenue of $10.71 billion. Analysts were expecting overall sales of $10.67 billion.
Excluding items, Thermo Fisher reported earnings of $5.03 per share in the quarter, in-line with Wall Street estimates.
The company said it would provide updates on its annual forecast in its earnings conference call.
https://news.yahoo.com/thermo-fisher-beats-revenue-estimates-102229147.html
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