Thermo Fisher Scientific Reports Fourth Quarter and Full Year 2022 Results

Original from: business wire

Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today reported its financial results for the fourth quarter and full year ended December 31, 2022.

Fourth Quarter and Full Year 2022 Highlights

- Fourth quarter revenue grew 7% to $11.45 billion.

- Fourth quarter GAAP diluted earnings per share (EPS) was $4.01.

- Fourth quarter adjusted EPS was $5.40.

- Full year revenue grew 15% to $44.92 billion.

- Full year GAAP diluted EPS was $17.63.

- Full year adjusted EPS was $23.24.

- During the year, we strengthened our industry leadership, advanced our trusted partner status with our customers, delivered excellent financial performance for our shareholders, and invested in our world class team.

- Achieved outstanding and differentiated Core organic revenue growth, growing 14% in both the fourth quarter and for the full year.

- Delivered another outstanding year of high-impact innovation, highlighted by the Applied Biosystems SeqStudio Flex Series genetic analyzer, the Thermo Scientific TRACE 1600 Series Gas Chromatograph, the Phadia 2500+ series of instruments, as well as the Orbitrap Ascend Tribrid mass spectrometer. During the quarter, we launched the Thermo Scientific Glacios 2 Cryo-TEM (transmission electron microscope) to accelerate structure-based drug discovery, the Gibco CTS DynaCellect Magnetic Separation System to advance the manufacturing of cell therapies, and the SeCore CDx HLA Sequencing System, which received marketing authorization by the FDA for use as a companion diagnostic with an immunotherapy to treat patients with a rare eye cancer.

- Continued to strengthen our unique customer value proposition by adding capacity and capabilities globally for pharma services, bioproduction, and clinical research services. During the fourth quarter, this included the opening of a new state-of-the-art bioanalytical lab in Richmond, Virginia, to support our clinical research business and the increasing demand for analytical services to accelerate drug development.

- Advanced our industry-leading scale and depth of capabilities in high-growth and emerging markets. During the fourth quarter, this included opening a new biologics manufacturing facility in Hangzhou, China, to offer integrated clinical and commercial drug substance and drug product capabilities for customers.

- Very active year advancing our environmental, social and governance (ESG) priorities. We made strong progress on our Scope 1 and Scope 2 emissions initiatives, enabling us to increase our 2030 greenhouse gas emissions reduction targetand accelerate our transition to 100% renewable energy. Among the highlights from our Foundation for Science, we supported students across the globe through our STEM education programs and colleague-led Community Action Councils. Throughout the year, the company also received a variety of awards and recognition for its industry leadership and inclusive culture including being recognized by Forbes magazine during the quarter as one of the World’s Top Female-Friendly Companies and one of America’s Best Employers for veterans.

- Continued to successfully execute our capital deployment strategy in 2022. The integration of PPD is largely complete and drove strong returns for our shareholders with outstanding execution and business performance throughout the year. For the full year, PPD delivered outstanding Core organic revenue growth and is on track to deliver total synergies of $175 million by year 3. Additionally, we returned $3.5 billion of capital to shareholders through stock buybacks and dividends. Shortly after year end, we completed the acquisition of The Binding Site for $2.7 billion.

“We had another exceptional year, exceeding our goals and delivering for all of our stakeholders in 2022,” said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher Scientific. “Thanks to our incredible global team, we successfully executed our proven growth strategy, effectively navigated the macro-environment, and delivered impressive financial results, as we continued to enable our customers to make the world healthier, cleaner and safer.”

Casper added, “We are incredibly well positioned as we enter 2023. Our high-impact innovation and unique customer value proposition continue to drive significant share gain. Our experienced management team, PPI Business System and the benefits of scale, position our company to deliver another outstanding year of value creation for all of our stakeholders and ensure we create an even brighter future.”

Fourth Quarter 2022

Revenue for the quarter grew 7% to $11.45 billion in 2022, versus $10.70 billion in 2021. Organic revenue was 3% lower, Core organic revenue growth was 14%, and COVID-19 testing revenue was $0.37 billion.

GAAP Earnings Results

GAAP diluted EPS in the fourth quarter of 2022 was $4.01, versus $4.17 in the same quarter last year. GAAP operating income for the fourth quarter of 2022 was $1.86 billion, compared with $2.54 billion in the year-ago quarter. GAAP operating margin was 16.3%, compared with 23.7% in the fourth quarter of 2021.

Non-GAAP Earnings Results

Adjusted EPS in the fourth quarter of 2022 was $5.40, versus $6.54 in the fourth quarter of 2021. Adjusted operating income for the fourth quarter of 2022 was $2.56 billion, compared with $3.16 billion in the year-ago quarter. Adjusted operating margin was 22.4%, compared with 29.5% in the fourth quarter of 2021.

Full Year 2022

Revenue for the full year grew 15% to $44.92 billion in 2022, versus $39.21 billion in 2021. Organic revenue grew slightly, Core organic revenue growth was 14%, and COVID-19 testing revenue was $3.11 billion.

GAAP Earnings Results

GAAP diluted EPS for the full year was $17.63, versus $19.46 in 2021. GAAP operating income for 2022 was $8.39 billion, compared with $10.03 billion a year-ago. GAAP operating margin was 18.7%, compared with 25.6% in 2021.

Non-GAAP Earnings Results

Adjusted EPS for the full year was $23.24, versus $25.13 in 2021. Adjusted operating income for the full year was $10.99 billion, compared with $12.14 billion a year-ago. Adjusted operating margin was 24.5%, compared with 31.0% in 2021.

Annual Guidance for 2023

Thermo Fisher is initiating revenue and adjusted EPS guidance for the full year 2023. The company expects to achieve 2023 revenue of $45.3 billion and full year Core organic revenue growth of 7%. The company expects to achieve adjusted EPS of $23.70.

Source: Thermo Fisher Scientific Reports Fourth Quarter and Full Year 2022 Results