10:53 AM EDT, 07/24/2024 (MT Newswires) -- Thermo Fisher Scientific ( TMO ) increased its full-year earnings outlook on Wednesday as the medical-device manufacturer's second-quarter results beat Wall Street's expectations.

The company now anticipates adjusted earnings to come in between $21.29 and $22.07 a share in 2024, up from its previous guidance range of $21.14 to $22.02. Revenue is expected between $42.4 billion to $43.3 billion, reflecting a higher bottom end than the prior forecast's $42.3 billion estimate. The consensus on Capital IQ is for normalized EPS of $21.69 and revenue of $42.98 billion.

"The improved revenue guidance does not change the core organic revenue growth rounding of the year, so we still continue to assume core organic revenue growth will be in the range of minus 1% to positive 1% for 2024," Chief Financial Officer Stephen Williamson said during an earnings call, according to a Capital IQ transcript. "And we continue to assume that the market declines low single-digits this year."

For the three months through June 29, adjusted EPS advanced to $5.37 from $5.15 in the prior-year quarter, versus the Street's view for $5.13. Revenue slipped 1% to $10.54 billion, but came in ahead of analysts' estimate of $10.52 billion.

By segment, life sciences and solutions revenue declined to $2.36 billion from $2.46 billion in the prior-year quarter, as growth in biosciences was more than offset by "the impact of the pandemic," Williamson said on the call. Revenue in the analytical instruments division increased 2% to $1.78 billion, aided by gains in the electron microscopy business, according to Williamson.

Laboratory products and biopharma services' sales fell 1% to $5.76 billion, driven by "runoff of vaccines and therapies revenue," Williamson told analysts. Specialty diagnostics moved higher to $1.12 billion from $1.11 billion the year before.

Adjusted operating margin improved 10 basis points year over year to 22.3% in the second quarter. Costs and operating expenses fell to $8.72 billion from $9.11 billion last year, according to the company.

"We continue to see the benefit of our proven growth strategy and the impact of our (practical process improvement) business system in our performance," Chief Executive Marc Casper said in a statement.

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