Thermo Fisher gains after lifting full-year profit outlook

How much did Thermo Fisher shares move?

Thermo Fisher Scientific (NYSE: TMO) shares rose 1.0% on Wednesday. They closed at $694.02, up from $687.37 the day before.

Why it matters: That left the stock 0.4% below its 52-week high of $696.49, the highest price of the past year.

By the numbers: The gain stood out in its sector. The health care sector fund fell 0.5%. The S&P 500 rose 0.6%. Thermo Fisher shares worth $2.8 billion changed hands.

What did the company report?

The lab and life-science supplier beat analyst forecasts for Q3 profit and sales. Its adjusted earnings, a profit measure that leaves out unusual items, came in above the consensus, the average analyst forecast.

Sales grew from a year earlier and also topped the consensus. Its adjusted operating margin, the profit the core business keeps from each dollar of sales, improved from a year ago.

Thermo Fisher also raised its full-year guidance, its own forecast for results, for both adjusted earnings and sales.

What drove the results?

The company said on its earnings call that better conditions in its end markets, seen in Q2, carried on into Q3. It pointed to strong customer activity.

Chairman and CEO Marc Casper said the pharma and biotech business grew, led by pharma services and the research and safety channel. Clinical research also grew. The analytical instruments unit expanded, helped by electron microscopes.

Not every part grew. Revenue from academic and government customers was flat, according to the company. Reported sales in specialty diagnostics declined from a year earlier.

What comes next?

What’s next: The raised outlook sets a higher bar for the rest of the year. Whether the company clears it may depend on whether demand from drug makers and biotech firms holds up.

A scheduled event for the broad market is the Federal Reserve's interest-rate decision on Oct. 28 at 2 p.m. ET. It could move stocks across sectors, including health care stocks.