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Thermo Fisher Scientific Set to Report Q4 Earnings Soon

Thermo Fisher Scientific is poised to reveal its Q4 earnings, with analysts predicting a profit increase in EPS. Despite recent underperformance, the overall analyst sentiment remains bullish, suggesting potential upside for investors.

Date: 
AI Rating:   6

Earnings Per Share (EPS)
Analysts expect Thermo Fisher Scientific Inc. (TMO) to report a profit of $5.92 per share for Q4, reflecting a 4.4% year-over-year increase from $5.67 in the previous year. Moreover, EPS estimates for fiscal 2024 show a slight increase to $21.68 from $21.55 in fiscal 2023, and a projected growth of 7.3% to $23.26 for fiscal 2025. Previous quarters have seen TMO exceed EPS expectations, boosting investor confidence.

Revenue Growth
The recent Q3 earnings report indicated total revenue of $10.6 billion, which fell short of consensus estimates, causing some investor concern. Both organic and core organic revenues were flat year-over-year, reflecting stagnation in revenue growth.

Profit Margins
Despite raising its full-year adjusted EPS guidance to between $21.35 and $22.07, margin contraction and elevated operating expenses dampened overall sentiment. This can potentially negatively affect investors' views on the stock's near-term performance.

Broker Ratings and Price Target
The overall consensus from analysts remains bullish, with a “Strong Buy” rating based on the opinion of 25 analysts, including 17 “Strong Buys.” The average price target of $649 implies almost 19% upside from current levels, presenting a favorable outlook for potential investors.

In summary, while TMO's recent revenue miss and margin concerns may pose short-term challenges, the expected growth in EPS and strong analyst ratings signify positive long-term potential.