Thermo Fisher Scientific ($TMO) again beat Street predictions, riding a boost in diagnostics sales to a 9.4% increase in net income for the third quarter.
The company took in $290.4 million in net profit on $3.09 billion in revenue, 5% above the same period last year and $100 million over Wall Street estimates, Reuters reports. As a result, the company is raising its 2012 outlook by about 5 cents per share, predicting earnings of up to $4.88 per share and annual revenue of about $12.4 billion.
Thermo Fisher closed its $925 million acquisition of diagnostics company One Lambda last quarter, and the buy spurred a 15% jump in sales for Thermo's specialty diagnostics unit, bringing in $707 million in revenue. The company's analytical technologies revenue ticked up about 1%, and its lab products unit grew by 4.8% on the quarter.
Thermo Fisher still makes most of its money selling lab equipment, but the company has doubled down on diagnostics over the past year, between the One Lambda buy and a 6% quarterly increase in R&D spending. Thermo launched new assays around the world in Q3, and CEO Marc Casper said the company plans to further expand its diagnostics market share.
"Our innovative products, presence in emerging markets and commercial capabilities uniquely position us to help our customers meet their goals in the current economic environment," Casper said in a statement.