Thermo Fisher Scientific Reports Mixed Q3 Results, Acquires Olink Holding AB for $3.2B

Thermo Fisher Scientific Inc. reported its financial results for the three and nine months ended September 28, 2024, showing mixed performance compared to the same periods in 2023. For the third quarter, total revenues reached $10,598 million, a slight increase from $10,574 million in Q3 2023. However, for the nine-month period, revenues decreased to $31,484 million from $31,971 million, reflecting a 2% decline. The company attributed the revenue changes to reduced demand for COVID-19 related products, particularly impacting the pharmaceutical and biotech sectors, while academic and government markets showed growth due to strong demand for electron microscopes and lab products.

Operating income for Q3 2024 was $1,838 million, down from $1,864 million in the prior year, while net income decreased to $1,629 million from $1,695 million. Basic earnings per share (EPS) for the quarter were $4.26, compared to $4.44 in Q3 2023. In contrast, for the nine months ended September 28, 2024, net income increased to $4,514 million from $4,349 million, with basic EPS rising to $11.79 from $11.31.

The company’s total assets increased to $100,364 million as of September 28, 2024, up from $98,726 million at the end of 2023. Shareholders’ equity also rose to $48,992 million from $46,735 million. However, total current assets decreased to $23,783 million from $24,589 million.

Thermo Fisher continued its strategic growth through acquisitions, notably acquiring Olink Holding AB for $3,215 million on July 10, 2024, enhancing its Life Sciences Solutions segment. This followed previous acquisitions, including The Binding Site Group and CorEvitas, which were completed in early 2023. The company has recorded significant goodwill from these acquisitions, which is not expected to be tax-deductible.

Restructuring efforts have also been a focus, with costs totaling $151 million for the nine months ended September 28, 2024, primarily due to headcount reductions affecting approximately 2% of the workforce. The company anticipates additional restructuring charges of around $310 million in 2024.

Cash and cash equivalents decreased to $4,645 million from $8,077 million at the end of 2023, with net cash provided by operating activities for the nine months increasing to $5,377 million from $4,683 million. The company’s total debt rose to $35,313 million from $34,917 million, with short-term obligations increasing as well.

Overall, Thermo Fisher's performance reflects a complex landscape of growth through acquisitions and strategic restructuring, alongside challenges in certain market segments.