July 24, 2019 / 12:24 PM / a month ago

UPDATE 2-Thermo Fisher misses organic revenue growth estimates, shares fall

(Recasts first paragraph, adds details from conference call; Updates share movement)

By Manas Mishra

July 24 (Reuters) - Thermo Fisher Scientific Inc missed Wall Street estimates for quarterly organic revenue growth on Wednesday, hurt by an outage at one of its data centers, sending the company's shares down as much as 4.9%.

The company, the world's largest maker of scientific instruments, disclosed in a regulatory filing last month that overheated equipment at one of its data centers had released a fire suppressant gas, temporarily affecting some systems.

This had caused a delay in orders, lowering the company's organic revenue growth by 1% in the second quarter, Thermo Fisher said.

The technical problem has been resolved and the affected systems are running now, Chief Executive Officer Marc Casper said on a conference call.

The company said its organic revenue rose 5% in the quarter, lower than analysts' estimates of a 5.5% rise, according to three analysts.

The sales miss overshadowed an otherwise strong quarter, as the company reported a better-than-expected quarterly profit and raised its full-year forecast for earnings and sales, helped by a 9% rise in revenue at its life sciences solutions unit.

"This is a fine print given the circumstances, but expect a healthy amount of debate," Evercore ISI analyst Ross Muken wrote in a note.

Thermo Fisher's quarterly sales rose 4% to $6.32 billion, ahead of the average analyst estimate of $6.30 billion. The company said although acquisitions increased revenue by 1% in the quarter, currency fluctuations lowered the overall revenue by 2%.

The company forecast full-year adjusted earning per share between $12.16 and $12.26, compared with its prior range of $12.08 to $12.22.

Revenue at the company's life sciences unit, which makes tools and compounds used in medical research, rose to $1.71 billion, from $1.57 billion a year earlier, beating analysts' estimates of $1.65 billion, according to Refinitiv data.

Excluding items, the company earned $3.04 per share in the quarter ended June 29, above analysts' estimates of $3 per share.

Thermo Fisher said its quarterly net income rose nearly 50% to $1.12 billion, or $2.77 per share.

The company raised its full-year revenue forecast range to $25.30 billion to $25.50 billion, from $25.17 billion to $25.47 billion.

Shares of the company were down 3% at $284.64, after touching a low of $279.18. (Reporting by Manas Mishra in Bengaluru; Editing by James Emmanuel)

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