Strong Blood Storage Solutions Add Growth for Thermo Fisher Scientific

Thermo Fisher Scientific (up 69.7% since our first recommendation) continues to demonstrate its leadership in the scientific equipment industry by introducing innovative TSX Universal Series ultra-low temperature freezers to address growing demand in cancer therapies and transplantation.

Despite relying on acquisitions for growth, the company’s financial performance remains solid. Meanwhile, the company’s continued success in health technology and its commitment to innovation in critical areas support a positive long-term outlook for investors like you.

THERMO FISHER SCIENTIFIC INC. (New York symbol TMO; www.thermofisher.com) lets you tap this leading manufacturer of scientific instruments, laboratory equipment, diagnostic consumables, and life science reagents.

The company continues to introduce new products as well as upgrades. For instance, early last year it introduced the TSX Universal Series ultra-low temperature (ULT) freezer with enhanced performance, user experience and energy efficiency.

That latest development from Thermo Fisher built on 80 years of experience in engineering cold storage lab equipment.

Laboratories require reliable and effective cold storage solutions for their samples, often at a very specific temperature range, to advance critical research, adequately store samples or accelerate the development of new therapies. Accordingly, Thermo Fisher’s TSX Universal Series is targeted at adapting to diverse workflows, from high-use academic labs to longer-term storage facilities.

Notably, the TSX Series ULT platform now offers medical device units for the first time to store and preserve blood and blood products at freezing temperatures between -40°C and -86°C.

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All in all, strong market demand for blood and cell components for transplantation and transfusion in cancer therapies is leading the market growth of laboratory freezers. This bodes well for the company.

Meanwhile, Thermo Fisher is now expanding its central laboratory operations in Kentucky under its clinical research business.

The new 65,000-square-foot space in Covington, Kentucky will expand the company’s sample management and biorepository operations. The latest development will be in addition to its existing site in nearby Highland Heights. The new laboratory building involves a $47.8 million investment, .

Thermo Fisher Scientific: Revenue and earnings both beat estimates

In the quarter ended December 31, 2024, Thermo Fisher’s revenue rose 4.7%, to $11.40 billion from $10.89 billion a year earlier. That topped the consensus forecast of $11.28 billion. Excluding one-time items, per-share earnings climbed 7.6%, to $6.10 from $5.67. That beat the consensus estimate of $5.94.

Overall, Thermo Fisher has relied on acquisitions for growth; it also has a high p/e and low yield. That combination leaves the company’s shares vulnerable to a sharp setback on bad corporate news or overall stock market weakness.

Still, the company’s success with health technology could produce substantial gains.

The shares are now up 69.7% for our subscribers since we first recommended the stock in the May 2020 issue of Power Growth Investor at $325.83 a share. We still think they have room to move higher.

Recommendation in Power Growth Investor: Thermo Fisher Scientific Inc. is a buy.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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