Tariffs Bite Dan Loeb's Portfolio: Thermo Fisher Hit Hard, Discover Shines

With earnings season in full swing, let’s examine the performance of some major healthcare, utility, and financial services companies in Dan Loeb‘s Third Point LLC portfolio that reported earnings last week.

Thermo Fisher Scientific Inc (NYSE:TMO): Loeb acquired a stake in the company, attaining 350,000 shares in the fourth quarter 2024.

• On April 23, the company reported first-quarter 2025 adjusted earnings per share of $5.15, beating the street view of $5.10.
• Quarterly sales of $10.36 billion, almost flat year over year, outpaced the analyst consensus estimate of $10.23 billion.
• Thermo Fisher Scientific lowered 2025 adjusted EPS outlook from $23.10-$23.50 to $21.76-$22.84 vs. the consensus of $23.25 and revised sales guidance from $43.5 billion-$44 billion to $43.3 billion-$44.2 billion vs. consensus of $43.84 billion.
• The company expects U.S.-China tariffs to hurt sales in China for products made in the U.S. This will reduce revenue by $400 million in 2025. These tariffs will also raise the cost of parts and subassemblies sourced from China.
• After accounting for lower sales and higher costs—despite efforts to reduce the impact—the company expects adjusted operating income to take a $375 million hit compared to previous guidance.
• Several analysts lowered the price forecast following the results.
• On April 24, the company said that it would invest an additional $2 billion in the U.S. over the next four years.
• Year to date, Thermo Fisher fell about 21.03%, both underperforming the iShares U.S. Healthcare ETF (NYSE:IYH), which declined about 2.36% over the same time frame.

Pacific Gas & Electric Co. (NYSE:PCG): The investor had cut the stake from 49.75 million shares in the third quarter of 2024 to 48.5 million in the fourth quarter of 2024.

• On April 24, the company reported first-quarter adjusted EPS of 33 cents, down from 37 cents in the prior-year quarter and missing the estimates of 35 cents. Sales of $5.98 billion came below the street view of $6.13 billion.
• The company reiterated 2025 guidance for adjusted EPS at $1.48-$1.52 compared to consensus of $1.50.
• The company showed confidence in its equity strength, which is ‘fully satisfied’ to fund the five-year capital plan of $63 billion through 2028.
• Guggenheim analyst Shahriar Pourreza maintained a Neutral and raised the price forecast from $16 to $17. Evercore ISI Group analyst Michael Lonegan retained an In-Line rating and boosted the price forecast from $15 to $17.
• The company’s shares dipped around 15.88% so far in 2025 compared to VanEck Uranium and Nuclear ETF (NYSE:NLR) decline of 11.27%.

Discover Financial Services (NYSE:DFS): Loeb had acquired 640,000 shares in the company in the fourth quarter of 2024.

• On April 23, the company reported first-quarter EPS of $4.25, which beat the analyst consensus estimate of $3.39 by 25.37%. Revenue of $4.25 billion, exceeded the analyst consensus estimate of $4.22 billion.
• Provision for credit losses of $1.2 billion decreased $253 million from the prior year quarter, driven by a $190 million favorable reserve change and a $97 million decrease in net charge-offs.
• The company confirmed that it expects the merger with Capital One Financial Corp. (NYSE:COF) to close on or about May 18, 2025.
• TD Securities analyst Moshe Orenbuch maintained a Buy rating and slashed the price forecast from $188 to $184, while Truist Securities analyst Brian Foran boosted the price forecast from $219 to $229.
• The stock rose 4.98% compared to iShares Focused Value Factor ETF (NYSE:FOVL) decline of 5.67% YTD.

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