Washington, DC-based Danaher Corporation (DHR) is a leading global life sciences and diagnostics innovator, helping solve many of the world’s most important health challenges. It focuses on areas such as Life Sciences, Diagnostics, Biotechnology and more. Valued at $172.7 billion by market cap, Danaher employs over 61,000 people and operates in 50 different countries and 700 locations across the globe.
The healthcare giant is gearing up to announce its fourth-quarter earnings before the market opens on Wednesday, Jan. 29. Ahead of the event analysts expect Danaher to report a non-GAAP profit of $2.15 per share, up 2.9% from $2.09 per share reported in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter dropped marginally to $1.71 while beating analysts’ estimates of $1.56.
For full fiscal 2024, analysts expect Danaher to deliver an adjusted EPS of $7.50, down 1.1% from $7.58 in fiscal 2023. While in fiscal 2025, its earnings are expected to rebound 11.2% year-over-year to $8.34 per share.
DHR stock has gained 1.4% over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 24.2% surge but outperforming the Health Care Select Sector SPDR Fund’s (XLV) marginal gains during the same time frame.
Danaher stock prices dropped nearly 4% after the release of its disappointing Q3 results on Oct. 22. While its revenues increased 3.1% year-over-year to $5.8 billion, its non-GAAP core revenue grew by a marginal 50-basis points. Due to the ongoing weakness in the funding environment and lower activity levels in emerging markets, its GAAP sales declined by 2% and core sales decreased by a mid-single-digit in these markets. Furthermore, its developed markets Life Sciences segment core sales also observed a decline which was partially offset by gains from increased demand in the Diagnostics and Biotechnology segments.
Meanwhile, its selling, general, and admin expenses surged 19.2% year-over-year to approximately $2.1 billion which resulted in a 19.2% decline in operating profits to $958 million. Nevertheless, Danaher remains confident in the continued positive momentum of its bioprocessing business and leading portfolio to drive sustainable growth for shareholders.
The consensus opinion on DHR stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 23 analysts covering the stock, 16 recommend “Strong Buy,” two advise “Moderate Buy,” and five suggest “Hold” rating. Its mean price target of $287.86 indicates a 20.9% upside potential from current price levels.
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