Matthew Sykes's questions to Thermo Fisher Scientific Inc (TMO) leadership • Q3 2024
Question
Matthew Sykes asked about the Analytical Instruments segment, seeking to understand demand for routine instruments beyond the successful high-end products like Astral. He also asked for clarification on the drivers behind the implied step-up in Q4 operating margin.
Answer
Marc Casper, CEO, explained that while innovative high-end instruments are seeing strong adoption, the market for routine capital equipment is 'pretty muted,' particularly due to weakness in China. He saw no signs of a change in replacement cycle trajectory. CFO Stephen Williamson attributed the implied Q4 margin step-up to the normal seasonal increase in revenue volume, which drives operating leverage.