TMO Thermo Fisher Scientific Inc

By Rob Curran

Thermo Fisher Scientific Inc. said first-quarter net income fell 42% as sales of Covid 19-testing and other laboratory equipment fell even as costs rose.

The Waltham, Mass., life-sciences and laboratory equipment concern said earnings for the quarter ended April 1 fell to $1.29 billion, or $3.32 a share, from $2.21 billion, or $5.61 a share, a year earlier. Backing out certain one-off items, Thermo Fisher posted adjusted first-quarter earnings of $5.03 a share, in line with the average Wall Street peg.

First-quarter revenue slipped 9.4% to $10.71 billion. In a sign that inflation took its toll on operations, cost of revenue rose to $6.43 billion from $6.21 billion a year earlier, despite the sales decline.

Thermo Fisher posted $140 million in first-quarter Covid 19 testing revenue.

Another major maker of lab supplies, Danaher, recently cited dwindling demand for Covid-19 related products and reduced investments by biotech companies on research-and-development for weakness in its earnings.

During the quarter, Thermo Fisher struck agreements to power all current U.S. sites solely with renewable energy by 2026.

In February, Thermo Fisher had forecast 2023 organic revenue growth of 7% and adjusted earnings of $23.70 a share. The company will update its financial projections during a conference call at 8.30 a.m. ET.

Shares of Thermo rose 1.7% to $557.45 premarket.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

April 26, 2023 06:41 ET (10:41 GMT)

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