Thermo Fisher (TMO), Boston Scientific (BSX) lift guidance after Q3 results

Highlights

  • Thermo Fisher Scientific Inc’s (NYSE: TMO) revenue increased by 9% YoY in Q3, FY21.

  • TMO raised its revenue guidance for fiscal 2021 to US$37.1 billion.

  • Boston Scientific Corp (NYSE: BSX) expects EPS in the range of US$0.21 to US$0.23 in Q4, FY21.

Biotechnology company Thermo Fisher Scientific Inc (NYSE: TMO) and medical device manufacturer Boston Scientific Corporation (NYSE: BSX) reported modest revenue growth in their latest quarters before the opening bell on Wednesday.

The TMO stock was up 1.63% to US$618.25, while the BSX stock traded flat at US$44.32 in the pre-market compared with the previous closing prices.

Third-quarter highlights

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Thermo Fisher Scientific Inc

Thermo Fisher is an advanced instrumentation company based in Waltham, Massachusetts. It manufactures lab instruments and consumables for the healthcare industry.

Its revenue surged 9% YoY to US$9.33 billion in Q3, FY21, aided by increased demand for Covid-related healthcare products. The results beat analysts' revenue estimates of US$8.39 billion in the quarter, according to Refinitiv data.

Its operating income was US$2.27 billion against US$2.42 billion in the year-ago quarter. It reported a net income of US$1.90 billion, or US$4.79 per diluted share, as compared to US$1.93 billion, or US$4.84 per diluted share in Q3, FY20.

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The company has raised its guidance for fiscal 2021 by US$1.2 billion or 15% YoY to US$37.1 billion. It also raised its forecast for annual adjusted EPS by US$1.30 to US$23.37, an increase of 20% from the previous year.

Thermo Fisher has a market cap of US$239.33 billion, a P/E ratio of 28.2, and a forward P/E one year of 27.46. Its EPS is US$21.57. The 52-week highest and lowest stock prices were US$616.93 and US$433.52, respectively. Its trading volume was 1,051,502 on October 26.

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Thermo Fisher (TMO) and Boston Scientific (BSX) reported third quarter earnings, TMO raised annual guidance

 

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Boston Scientific Corporation (NYSE: BSX)

Boston Scientific is a manufacturing company based in Marlborough, Massachusetts. It manufactures medical equipment.

The company's net sales increased by 10.3% YoY to US$2.93 billion in Q3, FY21. Its gross profit was US$2.03 billion, as compared to US$1.79 billion in the previous year's third quarter.

The firm's operating income was US$387 million, against a loss of US$205 million in Q3, FY20. Its net income came in at US$419 million, or US$0.28 per share, against a loss of US$169 million, or a loss of US$0.12 per share in the prior year's same quarter.

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On a reported basis, the firm expects its net sales to grow between 13% and 17% YoY in Q4, FY21, and between 19% and 20% for fiscal 2021. It expects its Q4, FY21 EPS to be between US$0.21 and US$0.23, while the fiscal 2021 EPS to be between US$0.83 and US$0.85.

Boston Scientific’s market cap is US$63.10 billion, the P/E ratio is 134.3, and the forward P/E one year is 27.53. Its EPS is US$0.33. The stock saw the highest price of US$46.28 and the lowest price of US$32.99 in the last 52 weeks. Its share volume on October 26 was 5,314,707.

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Bottomline

Both the stocks witnessed significant gains in recent quarters. The TMO stock rose 28.93% YTD, while the BSX stock gained 25.66% YTD. On the other hand, the S&P 500 Health Care sector increased by 16.62% YTD while increasing 4.04% QTD, suggesting the sector's steady growth. However, investors should evaluate the companies carefully before investing in stocks.

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