Thermo Fisher forecasts 2024 profit below estimates on biotech demand slump

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Written By Pinang Driod

© Reuters. FILE PHOTO: A company flag flies outside the offices of Thermo Fisher Scientific offices in Waltham, Massachusetts, U.S., August 2, 2023. REUTERS/Brian Snyder/File Photo

(Reuters) – Medical equipment maker Thermo Fisher Scientific Inc (NYSE:) on Wednesday forecast annual profit below Wall Street estimates, as it expects that a slump in demand for its services used to make therapeutics and vaccines to continue this year.

The company forecast an adjusted profit between $20.95 and $22.00 per share for 2024.

Analysts on average were expecting a profit of $22.04 per share in the year, according to LSEG data.

Thermo Fisher and rival Danaher (NYSE:) have seen sluggish demand throughout last year for their bioprocessing services used to make therapies and vaccines, as their biotech clients were cautious in their drug development spending owing to rising interest rates.

Slowing growth in China, a key market for both the companies, has also crimped demand for contract research services and lab equipment.

Thermo said it expects revenue of $42.1 billion to $43.3 billion this year, below analysts’ expectations of $42.93 billion.

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