Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: How did the quarter progress and how does that progression inform your thinking on the outlook for the balance of the year?
A: Marc N. Casper, Chairman, President & CEO of Thermo Fisher Scientific, noted that market conditions in Q1 were in line with expectations, with strong execution resulting in financial performance ahead of expectations. This allowed the company to retire risk and raise the full-year outlook. He highlighted positive developments like improvements in the biotech funding environment and a stimulus program announced by China, supporting a modest pickup in economic activity as the year progresses.
Q: Can you discuss the performance and outlook for the Lab Products and Services segment, particularly the CRO and CDMO businesses?
A: Stephen Williamson, Senior VP & CFO, mentioned that the segment performed as expected, with no significant outperformance. Marc Casper added that the clinical research business executed excellently, driving strong performance. He noted an encouraging pickup in the pipeline of work, reflecting an improving biotech funding environment.
Q: What gives you confidence that the improvements in biotech funding and the stimulus in China have really turned the corner?
A: Marc Casper explained that the modest pickup assumed in their original guidance is supported by these developments. He clarified that they are not changing their market view upwards but these factors support their existing outlook. He also mentioned that the market conditions, including the performance across four end markets, played out as expected, which adds to the predictability and visibility for the business.
Q: How is the Analytical Instruments segment performing, particularly in chromatography and mass spectrometry?
A: Marc Casper described the Analytical Instruments segment's performance as strong, particularly highlighting the electron microscopy business. He noted strong uptake of new products like the Astral in chromatography and mass spectrometry, and strong market leadership in ion chromatography which is significant for PFAS testing.
Q: Can you provide more details on the impact of the China stimulus and how it might affect Thermo Fisher?
A: Marc Casper indicated that while no orders related to the stimulus have been placed yet, there is significant customer engagement and proposal activity. He expects that orders might materialize later in the year, with direct revenue impact possibly seen late in the year. He emphasized the stimulus as a confidence booster for the broader business environment in China.
Q: What are the implications of the Biosecure Act and potential geopolitical tensions on Thermo Fisher's operations, especially in China?
A: Marc Casper stated that it's crucial to navigate changing global regulations and maintain compliance. He believes that Thermo Fisher's strong global presence and adherence to regulations position it well to manage any geopolitical challenges effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.