Scientific instrument and laboratory supply maker Thermo Fisher Scientific Inc. said Wednesday its net income climbed 21 percent in the first quarter as sales of lab products and diagnostic products improved.
The company lowered its profit forecast for 2013, however, because it is suspending its stock repurchase program after agreeing to buy genetic testing equipment maker Life Technologies. Thermo Fisher also raised the low end of its revenue estimate.
The guidance revisions exclude costs related to the $13.6 billion deal and related financing.
Thermo Fisher's net income grew to $336.2 million, or 93 cents per share, from $277.3 million, or 75 cents per share. Excluding one-time charges like amortization and restructuring costs, the company said its earnings per share rose to $1.37 from $1.17.
Revenue increased 4 percent, to $3.19 billion from $3.06 billion.
Analysts expected income of $1.29 per share and $3.18 billion in revenue, according to FactSet.
Thermo Fisher said revenue from laboratory products and services rose 5 percent to $1.54 billion, while specialty diagnostics revenue rose 10 percent to $806 million. Analytical technologies revenue slipped to $978 million from $980 million.
Thermo Fisher last week agreed to buy Life Technologies for $13.6 billion, or $76 per share. The deal gives Thermo Fisher an opportunity to benefit from the expected growth of personalized medicine, which uses genetic analysis to tailor treatments to patients. Life Technologies, of Carlsbad, Calif., makes DNA sequencing systems that can sequence a person's entire genome in one day for $1,000, and it sells products used in genetic analysis and engineering, stem cell therapies and chemicals used in forensics and food safety.
Thermo Fisher expects to complete the purchase of Life Technologies in early 2014. Thermo Fisher reported $12.51 billion in revenue in 2012, and Life Technologies had $3.8 billion.
Thermo Fisher now expects to earn $5.27 to $5.39 per share in 2013 on revenue of $12.84 billion to $13 billion. Previously it forecast net income of $5.32 to $5.46 per share and $12.8 billion to $13 billion in revenue.
Analysts project net income of $5.39 per share and $12.96 billion in revenue, on average.
Shares of Thermo Fisher rose 81 cents to $81.44 in midday trading.