Thermo Fisher Scientific Inc.'s (TMO) first-quarter earnings rose 10% as the supplier of analytical technologies and laboratory products saw increased revenue from all segments, though margins slipped on higher costs.
Results topped expectations, and the company also raised its full-year earnings estimate to $4.71 to $4.83 a share on revenue of $12.27 billion to $12.43 billion from its February forecast of $4.67 to $4.82 a share on revenue between $12.15 billion to $12.35 billion.
Thermo Fisher's sales have improved in recent quarters, aided by acquisitions and its expansion into Asia-Pacific markets. The company also launched new products last year to expand its mass spectrometry, specialty diagnostics and laboratory equipment lineup. But higher research and development costs, on top of restructuring and acquisition charges, have challenged its bottom line of late.
Last month, Standard & Poor's Ratings Services lowered its outlook on Thermo Fisher to negative, citing uncertainty about the company's willingness to reduce debt after Thermo Fisher initiated a quarterly dividend.
Thermo Fisher reported a profit of $277.3 million, or 75 cents a share, up from $252.2 million, or 63 cents, a year earlier. Excluding items such as asset amortization, restructuring and acquisition-related costs, earnings rose to $1.17 from 92 cents. Revenue jumped 14% to $3.1 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of $1.11 on revenue of $2.98 billion.
Operating margin dipped to 11.4% from 11.8% on higher costs.
The laboratory products and services segment--the company's largest top-line contributor--saw a 4.5% revenue increase while its operating profit rose 1.2%. The analytical technologies segment's revenue jumped 21% and earnings grew 35%. Specialty diagnostics segment revenue increased 27%, while its income was up 31%.
Shares closed Tuesday at $52.74 and were inactive premarket. The stock is up 17% so far this year.
--By Melodie Warner, Dow Jones Newswires; 212-416-2283; email@example.com