Danaher Corporation DHR is scheduled to release fourth-quarter 2024 results on Jan. 29, before market open.
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The Zacks Consensus Estimate for revenues is pegged at $6.44 billion, which indicates an increase of 0.5% from the year-ago quarter’s figure. The consensus mark for earnings is pinned at $2.16 per share, which increased a penny in the past 60 days. The estimate indicates an increase of 3.4% from the figure reported in the year-ago quarter. The company’s bottom line surpassed the Zacks Consensus Estimate by 9.6% in the last reported quarter. It has a trailing four-quarter earnings surprise of 10.2%, on average.
Let’s see how things have shaped up for Danaher this earnings season.
Danaher Corporation Price and EPS Surprise
Danaher Corporation price-eps-surprise | Danaher Corporation Quote
Key Factors and Estimates for Q4
Weakness in Danaher’s Instrument businesses, due to lower demand across pharma and biotech markets in China, is likely to have hurt the Life Sciences segment’s revenues in the fourth quarter. Also, sales decline in mass spectrometry, flow cytometry & lab automation solutions, and microscopy businesses due to soft demand for equipment in the major end-markets is likely to have ailed the segment. We expect the segment’s organic revenues to decrease 2.6% year over year in the fourth quarter.
Danaher’s Biotechnology segment is expected to have been hurt by decreased demand in the discovery and medical business.
DHR has been witnessing escalating SG&A expenses, which are likely to weigh on its bottom-line results. We expect SG&A expenses to be $2.1 billion, indicating an increase of 3.2% year over year.
The company has considerable exposure to overseas markets. Given its substantial international operations, foreign currency headwinds are likely to have marred its profitability.
We expect the company’s revenues to be $6.4 billion, indicating a decrease of 0.2% year over year.
However, strength in the clinical diagnostics business, driven by growth in Leica Biosystems and Beckman Colter Diagnostics units, is expected to have aided the Diagnostics segment. The segment’s performance is also likely to have gained from strong momentum in the clinical diagnostics businesses and solid growth in the molecular diagnostics business.
Danaher acquired Abcam plc, a global supplier of protein consumables, in December 2023, which expanded the Life Sciences segment. Abcam's long track record of innovation, outstanding product quality and breadth of antibody portfolio are expected to have helped Danaher solve some pertaining healthcare challenges.
We expect the company’s adjusted earnings to be $2.14 per share, indicating an increase of 2.3% year over year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for DHR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Danaher has an Earnings ESP of +0.96% as the Most Accurate Estimate is pegged at $2.18 per share, which is higher than the Zacks Consensus Estimate of $2.16. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Danaher presently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
EnerSys ENS has an Earnings ESP of +7.24% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to release third-quarter fiscal 2025 (ended December 2024) results on Feb. 5. EnerSys’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.7%.
Dover Corporation DOV has an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2024 results on Jan. 30.
Dover’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4%.
AptarGroup, Inc. ATR has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2024 results on Feb. 6.
AptarGroup’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.1%.
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Danaher Corporation (DHR) : Free Stock Analysis Report
Dover Corporation (DOV) : Free Stock Analysis Report
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
