Thermo Fisher Scientific Stock Slides After Warning About 2024 Demand

Shares of Thermo Fisher Scientific Inc. (TMO) dropped over 3% in intraday trading Wednesday after the medical device maker posted lower-than-expected guidance for 2024 as biotech companies rein in product spending.

The company said it expects full-year earnings per share (EPS) of $20.95 to $22, and revenue of between $42.1 billion and $43.3 billion. The EPS and midpoint of the revenue outlook were below analysts’ estimates. 

For the fourth quarter, the company reported higher EPS of $5.67, with revenue falling 5% from a year earlier to $10.89 billion. Full-year 2023 revenue also declined 5% to $42.86 billion, and EPS was down 7% to $21.55.

Fourth-quarter profit was boosted by cost-cutting measures and higher sales of analytical instruments, Thermo Fisher said. Organic revenue slipped 7%, with COVID-19 testing revenue down by 3%.

Chief Executive Officer (CEO) Marc Casper said Thermo Fisher Scientific effectively navigated “challenging macroeconomic conditions” during the year by leveraging the success of its Practical Process Improvement (PPI) Business System. However, he told analysts that Thermo Fisher Scientific doesn’t anticipate “meaningful improvement” in its key market of China for 2024.

Thermo Fisher Scientific shares were 3.8% lower at $545.97 per share as of about 2:50 p.m. ET Wednesday, and have lost more than 4% of their value over the past year.