Thermo Fisher Scientific Authorizes $4 Billion of Share Repurchases

Rhea-AI Summary

Thermo Fisher Scientific (NYSE: TMO) announced that its Board of Directors has authorized a new $4 billion share repurchase program. The program, which has no expiration date, will allow the company to buy back shares through open market or negotiated transactions. This new authorization replaces the existing program, which had $1 billion remaining.

Positive

• New $4 billion share repurchase program authorized
• No expiration date on the buyback program provides flexibility
• Larger authorization compared to previous program's remaining $1 billion

Negative

• None.

Insights

Financial Analyst

The $4 billion share repurchase authorization signals strong financial confidence and commitment to shareholder returns. This fresh mandate, replacing the previous program with $1 billion remaining, represents approximately 2% of TMO's market cap. The absence of an expiration date provides flexibility in execution timing, allowing management to be opportunistic with purchases.

The buyback comes at an interesting time when TMO's stock has experienced some pressure, trading below historical averages. Share repurchases can help support the stock price while potentially indicating management's view that shares are undervalued. The size of the program demonstrates robust cash flow generation and balance sheet strength, particularly notable given TMO's strategic acquisition history and R&D investments.

11/15/2024 - 08:00 AM

WALTHAM, Mass.--(BUSINESS WIRE)-- Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced that its Board of Directors has authorized the repurchase of $4 billion of shares of its common stock in the open market or in negotiated transactions. The authorization has no expiration date. This replaces the company’s existing repurchase authorization, of which $1 billion was remaining.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue of approximately $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241115656946/en/

Media Contact Information:

Sandy Pound

781-622-1223

sandy.pound@thermofisher.com

Investor Contact Information:

Rafael Tejada

781-622-1356

rafael.tejada@thermofisher.com

Source: Thermo Fisher Scientific Inc.

FAQ

How much is Thermo Fisher Scientific's (TMO) new share repurchase program worth?

Thermo Fisher Scientific's new share repurchase program is worth $4 billion.

When does TMO's $4 billion share repurchase authorization expire?

The share repurchase authorization has no expiration date.

How much was remaining in TMO's previous share repurchase program?

There was $1 billion remaining in Thermo Fisher Scientific's previous share repurchase program.

How will TMO execute its new $4 billion share repurchase program?

Thermo Fisher Scientific will repurchase shares through open market or negotiated transactions.