Thermo Fisher Lowers Annual Profit Forecast for Second Consecutive Quarter Amid Weakened Biotech Demand

Shares slump over 7% as multinational corporation reduces EPS to $21.50 and sales outlook to $42.7 billion, reflecting rising industry pressures and decreased biotech spending.

Thermo Fisher Scientific has lowered its full-year earnings per share (EPS) and sales outlook for the second consecutive quarter due to weak market conditions.
The company's third-quarter 2023 revenue fell 1%, amounting to $10.57 billion, slightly missing estimates. However, its adjusted EPS of $5.69 exceeded forecasts despite the downturn.
Thermo Fisher's management attributes the revenue drop to increasing macroeconomic pressures experienced throughout the year, particularly in the third quarter.
Amid these challenges, Thermo Fisher still managed to maintain strength in its Practical Process Improvement (PPI) Business System and highlighted the robust execution of its global team.
Despite the downturn, Thermo Fisher continues to invest in its future, illustrated by the $3.1 billion purchase of Sweden-based biotech firm Olink.