Thermo Fisher Scientific Completes $1B Share Repurchase

Rhea-AI Summary

Thermo Fisher Scientific (NYSE: TMO) has announced the completion of a $1 billion share repurchase program, which resulted in the buyback of 1.9 million shares of its common stock. As of December 3, 2024, the company maintains $3 billion in remaining authorization for future share repurchases.

Positive

• Completed $1B share repurchase program, reducing outstanding shares by 1.9 million
• Substantial $3B remaining in share repurchase authorization indicates strong financial position
• Share buyback demonstrates confidence in company's value and commitment to shareholder returns

Negative

• Significant cash outflow of $1B reduces available capital for other investments or operations

Insights

Financial Analyst

The $1 billion share buyback completion is a significant capital allocation move that demonstrates TMO's strong financial position and commitment to shareholder returns. With 1.9 million shares repurchased, this represents approximately 0.5% of TMO's outstanding shares, providing a modest boost to earnings per share through share count reduction.

The remaining $3 billion authorization signals continued confidence in the company's cash flow generation and financial flexibility. For a company with TMO's market cap, this level of buyback is meaningful yet conservative, maintaining balance sheet strength for potential M&A and organic growth investments. The timing and execution of the buyback suggest management views the current stock valuation as attractive.

Market Research Analyst

This buyback reflects broader market dynamics where large-cap healthcare companies are increasingly returning capital to shareholders amid solid cash positions. The average share price during the buyback period suggests TMO paid approximately $526 per share, indicating management's confidence in the stock's intrinsic value being higher than current market prices.

The remaining authorization provides a strong price support mechanism, potentially helping to stabilize the stock during market volatility. This systematic approach to capital return, combined with TMO's market leadership in life sciences and diagnostics, reinforces the company's position as a stable investment option in the healthcare sector.

WALTHAM, Mass.--(BUSINESS WIRE)-- Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced that it has completed the repurchase of $1 billion (1.9 million shares) of its common stock. As of December 3, 2024, $3 billion remained available under the company’s share repurchase authorization.

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/20241204111636/en/

Media:

Sandy Pound

781-622-1223

sandy.pound@thermofisher.com

Investor:

Rafael Tejada

781-622-1356

rafael.tejada@thermofisher.com

Source: Thermo Fisher Scientific Inc.

FAQ

How many shares did Thermo Fisher Scientific (TMO) repurchase in its recent buyback?

Thermo Fisher Scientific repurchased 1.9 million shares of its common stock.

What is the value of TMO's remaining share repurchase authorization?

As of December 3, 2024, Thermo Fisher Scientific has $3 billion remaining under its share repurchase authorization.

How much did Thermo Fisher Scientific (TMO) spend on its recent share buyback?

Thermo Fisher Scientific spent $1 billion on its recent share repurchase program.

When did Thermo Fisher Scientific (TMO) complete its $1B share repurchase?

Thermo Fisher Scientific completed its $1 billion share repurchase as reported on December 3, 2024.