In the last quarter, the company delivered a negative 3.45% earnings surprise. However, the company has delivered positive earnings surprises in three of the last four quarters, with an average beat of 0.54%. Let's see how things are shaping up for this announcement.
Thermo Fisher (TMO) to Divest Cole-Parmer to GTCR for $480M - Analyst Blog - NASDAQ.com
Earlier in the week, the company announced that it has acquired another mid-stage development candidate, Sollpura, from Eli Lilly and Company ( LLY ). The candidate is being developed for the treatment of patients suffering from low digestive enzyme levels or exocrine pancreatic insufficiency (EPI), due to cystic fibrosis or other potential diseases. Anthera mentioned in its press release that it also intends to form a subsidiary, Alkira Therapeutics, to sublicense all rights, obligations and intellectual property for the development and commercialization of Sollpura. Anthera is expected to provide adequate funding to Alkira so that it can advance Sollpura into phase III development. The phase III pivotal registration study, which was agreed by the FDA last year, is expected to start in mid 2015. As per the terms of the agreement, Alkira will be responsible for making all contingent milestone payments upon product approval and on certain annual sales achievements. Alkira will also pay royalties on any product sales after achieving certain sales thresholds of cumulative net sales of Sollpura.
Anthera Acquires Sollpura from Eli Lilly - Analyst Blog - NASDAQ.com
These include a controlling stake in Eurosport International, a popular sports entertainment group, for $1.2 billion in Jan 2014. It also acquired the SBS Nordic operations of Prosiebensat.1 Media AG for around $1.8 billion. SBS Nordic has 12 TV networks, 19 radio stations and several digital brands in Norway, Sweden, Denmark and Finland. In the trailing four quarters, this Zacks Rank #3 stock has beaten the Zacks Consensus Estimate by an average of 2.7% and has generated cash flow of $1,170 million, up 14% year over year, in 2013.
Arch Capital Up to Strong Buy Ahead of Q2 Earnings Release - Analyst Blog - NASDAQ.com
However, for the second quarter, Thermo Fisher had earlier assumed to post an EPS lower than the street number. This, according to the company, is because of some seasonal impact in the said quarter as salary increases have been affected during the period. This may have an impact on the quarterly bottom line. Based in Illinois, Cole-Parmer is a part of Thermo Fisher's Laboratory Products and Services Segment. This business provides fluid handling, test and measurement, and electrochemistry products and services. This business generated a significant $230 million in revenues during the last fiscal.
The Zacks Analyst Blog Highlights: Twenty-First Century Fox, Time Warner, Walt Disney, Scripps Networks Interactive and Discovery Communications - Yahoo Finance
These were partially offset by higher expenses. Subsequently, the book value per share improved 4.3% during the quarter. Arch Capital enjoys fair liquidity and risk-adjusted capital, thereby supporting a low-risk balance sheet. Going ahead, sturdy fundamentals and profitable writing of mortgage and insurance businesses are expected to mitigate market risks and drive operating leverage in the upcoming quarters, instilling a positive sentiment among investors. Upward estimate revisions witnessed by Arch Capital also reflect optimism. The Zacks Consensus Estimate for 2014 and 2015 rose 3.6% and 2.0% to $3.79 and $3.60 per share in the last 60 days, respectively. Notably, no downward estimate revision was witnessed for both the years.