Thermo Fisher Scientific stock declines on Q1 revenue decline

Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss the decline in stock for Thermo Fisher Scientific.

Video transcript

BRAD SMITH: Let's also talk about Thermo Fisher this morning. Thermo Fisher Scientific sees revenue decline in its latest quarter. That scientific instrument maker's results were hit by lower COVID-19 testing revenue here.

You're seeing shares down by about 4% this morning, and noteworthy that they've seen the testing revenue kind of just drip out at this point over the past several quarters. And, of course, why is that? Because there's not as much testing being done as when we were at some of the kind of peak COVID concern levels where tests-- there were basically a run on tests to try and figure out where you could get one. The government was subsidizing tests. And, in many cases, still you can apply for some of those subsidies for a test to be covered for you.

But all that said, we're not purchasing-- in the general public and offices, they're not purchasing tests at these same-- at that same level or volume, and that is directly hitting some of these results. You can see that as you look back over several quarters for Thermo Fisher Scientific as well here, and over the past three months, down by about 8 and 1/2%.

JULIE HYMAN: Yeah, and if you look at the individual-- even though overall earnings beat and revenue was in line with estimates, if you look at the individual lines of business, you see some misses. Life-sciences revenue was down by 38% and missed estimates. I'm looking at specialty-diagnostics revenue down by 25%. It looks like that missed estimates by a bit as well.

The company saw more strength in analytical instruments and lab products and services. But, you know, when two of your biggest lines of business are down and disappointing, you know, you see those shares down.

And by the way, that stock's on our trending ticker list this morning, which you spotted, TMO.

BRAD SMITH: It is. TMO, all right.

JULIE HYMAN: That's the ticker, not TMI, TMO.