Zacks Research Issues Pessimistic Outlook for TMO Earnings

Investment analysts at Zacks Research have revised their earnings outlook for Thermo Fisher Scientific Inc. (NYSE:TMO - Free Report). In a research note released on March 18th, it was announced that they have lowered their estimates for the company's earnings per share (EPS) for the third quarter of 2025. Analyst R. Department now anticipates that Thermo Fisher will earn $5.79 per share for that quarter, a slight reduction from their previous forecast of $5.80. For the current fiscal year, the consensus estimate for EPS stands at $23.28.

Other analysts have also weighed in on shares of Thermo Fisher Scientific. Raymond James reaffirmed an "outperform" rating, increasing their target price to $667.00, up from $650.00, in a note on February 3rd. Bank of America has adjusted their price target downwards from $675.00 to $660.00 while maintaining a "buy" rating. In another report from Sanford C. Bernstein on January 10th, the firm upgraded Thermo Fisher from a "market perform" rating to an "outperform" rating with a price target set at $630.00. Conversely, Citigroup lowered its price objective from $650.00 to $570.00, giving a "neutral" rating. Meanwhile, Royal Bank of Canada set a target price of $693.00. Overall, four analysts suggest holding the stock, while nineteen analysts have a buy rating, reflecting a favorable market sentiment, with an average rating of "Moderate Buy" and a consensus price target of $653.23.

Current Trading Overview for TMO

As Thermo Fisher Scientific's stock opened at $518.58 on Friday, its performance indicators show a 50-day moving average at $546.65 and a 200-day moving average at $556.94. Over the past year, the stock reached a low of $493.30 and a high of $627.88. The company's market capitalization is approximately $195.64 billion, with a price-to-earnings (P/E) ratio of 31.37, a price-to-earnings-growth ratio of 2.99, and a beta of 0.79. Its financial ratios include a current ratio of 1.66, a quick ratio of 1.29, and a debt-to-equity ratio of 0.59.

Quarterly Earnings Report

Thermo Fisher Scientific's last quarterly earnings report, released on January 30th, showed that the company generated earnings of $6.10 per share, outperforming the consensus estimate of $5.94 by $0.16. The medical research firm maintained a net margin of 14.78% and a return on equity of 17.51%. This positive performance underlined the company's robust financial health amid the current market conditions.

Recent Dividend Announcement

The firm made headlines again with the announcement of a quarterly dividend, scheduled for payment on April 15th. Shareholders of record by March 14th will receive a dividend of $0.43, which annualizes to $1.72, providing a yield of 0.33%. This increase from the previous quarterly dividend of $0.39 reflects Thermo Fisher's commitment to returning capital to its shareholders, with a current dividend payout ratio of 10.41%.

Insider Transactions

In insider trading, CFO Stephen Williamson sold 9,825 shares at an average price of $585.59, totaling approximately $5.75 million. Following this sale, he retains 27,296 shares valued at about $15.98 million, indicating a 26.47% reduction in his stake. Similarly, CEO Marc N. Casper sold 10,000 shares at an average price of $516.67, resulting in a total value of $5.17 million. Post-transaction, he owns 115,174 shares worth roughly $59.51 million, marking a 7.99% decrease in ownership. The past three months saw insiders collectively selling 23,900 shares for about $13.11 million, with insider ownership at 0.34%.

Hedge Fund Activity

In market movements, several hedge funds have either increased or adjusted their holdings in Thermo Fisher Scientific. Stonegate Investment Group LLC raised its stake by 0.3%, now owning 6,788 shares valued at $3.53 million. Similarly, Semus Wealth Partners LLC increased its holdings by 4.0%, owning 471 shares worth $245,000. Other firms, including Bangor Savings Bank and Eagle Rock Investment Company LLC, have also slightly adjusted their positions. Notably, institutional investors hold around 89.23% of the company's stock, indicating strong institutional interest.

Company Insight

Thermo Fisher Scientific Inc. specializes in life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products. It serves various markets, including pharmaceutical, biotechnology, agriculture, clinical, healthcare, and educational sectors internationally.

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