Thermo Fisher Scientific (NYSE:TMO) issued a forecast for full-year profit and sales that falls below Wall Street expectations on lower-than-expected demand for its services used in the production of therapies and vaccines, as well as increased costs for raw materials.
It is the second consecutive quarter in which the company has reduced its annual adjusted profit expectations.
The company revised its revenue outlook for the year to $42.7 billion, down from the previous range of $43.4 billion to $44 billion.
Additionally, Thermo Fisher expects to earn $21.50 per share for 2023, down from the earlier projection of $22.28 to $22.72 per share.
During its most recent quarter, 3Q 2023, Thermo Fisher posted revenue of $10.57 billion, which fell slightly short of analyst estimates of $10.6 billion. However, on an adjusted basis, the company reported earnings per share of $5.69, beating the $5.61 estimate.
Thermo Fisher Scientific (NYSE:TMO) has been working to expand its range of services through acquisitions to serve as a one-stop shop for biotech and pharmaceutical clients. However, soft demand for bioprocessing services used in therapy and vaccine production, along with funding challenges due to rising interest rates, have affected the demand for their contract research services.
The company remains focused on delivering strong short-term performance while enhancing its long-term competitive position, according to CEO Marc Casper.
Shares of Thermo Fisher were down around 3.5% prior to the market open on Wednesday at $442.05. Its stock has decreased 18.44% in the last three months and 8.89% in the last year.