Danaher’s Q3 Beat & Raise Failed to Boost Expectations

• Danaher Corporation (NYSE:DHR) reported an earnings per share (EPS) of $1.88, exceeding the estimated $1.63 and showcasing a 16.05% earnings surprise.
• The company's revenue for the first quarter of 2025 was approximately $5.74 billion, surpassing the estimated $5.57 billion and marking the fourth consecutive quarter of outperforming revenue expectations.
• Danaher's operating cash flow for the quarter was $1.3 billion, with non-GAAP free cash flow at $1.1 billion, indicating strong cash flow performance and solid market valuation with a P/E ratio of approximately 37.

Danaher Corporation (NYSE:DHR) is a prominent player in the industrial and medical device sector. The company is known for its diverse portfolio, which includes bioprocessing and molecular diagnostics. Danaher has consistently demonstrated strong financial performance, often surpassing market expectations. Its strategic positioning and robust balance sheet have been key to navigating challenging economic conditions.

On April 22, 2025, Danaher reported earnings per share (EPS) of $1.88, exceeding the estimated $1.63. This performance represents a 16.05% earnings surprise, as highlighted by Zacks. Although the EPS was slightly down from $1.92 the previous year, it still surpassed the consensus estimate of $1.64. The company's ability to exceed expectations is a testament to its effective execution and strategic initiatives.

Danaher's revenue for the first quarter of 2025 was approximately $5.74 billion, surpassing the estimated $5.57 billion. Despite a 1% year-over-year decline, the company exceeded the consensus estimate of $5.59 billion. This marks the fourth consecutive quarter where Danaher has outperformed revenue expectations, demonstrating its resilience and adaptability in a dynamic macroeconomic environment.

The company's operating cash flow for the quarter was $1.3 billion, with non-GAAP free cash flow at $1.1 billion. Danaher's strong cash flow performance is supported by its effective execution of the Danaher Business System, which has accelerated innovation and improved productivity. The company's price-to-earnings (P/E) ratio is approximately 37, with a price-to-sales ratio of about 5.84, indicating a solid valuation in the market.

Rainer Blair, President and CEO of Danaher, attributes the company's success to continued momentum in bioprocessing and better-than-expected demand in the molecular diagnostics business. Despite a more dynamic macroeconomic environment, Danaher's strategic positioning and capabilities have proven advantageous. The company's resilient portfolio and strong balance sheet are key factors in navigating these challenging times.

Danaher (NYSE:DHR) kicked off 2025 with a robust first-quarter performance, delivering results that exceeded expectations across revenue, profit, and cash flow, sending its shares 6% higher intra-day today.

Adjusted earnings per share came in at $1.88, well above the $1.62 anticipated by analysts. Revenue reached $5.74 billion, topping projections of $5.56 billion. Operating profit also impressed at $1.27 billion, outperforming the $1.1 billion consensus.

The strong quarter was fueled by continued strength in the company’s bioprocessing segment and better-than-expected demand in molecular diagnostics, particularly related to respiratory testing. These areas helped offset broader macro uncertainties and demonstrated the resilience of Danaher’s portfolio.

Looking ahead, the company projects modest core revenue growth in the low single digits for the second quarter. For the full year, Danaher maintained its guidance, forecasting earnings per share between $7.60 and $7.75, aligning closely with the current analyst consensus. Core revenue growth is expected to be around 3% for the year.

Danaher (NYSE:DHR) shares rose more than 2% intra-day today after it received an upgrade from Hold to Buy from Stifel analysts, who set a $260 price target, citing improved valuation and long-term growth potential despite a subdued near-term outlook.

Following a period of downward earnings revisions and a valuation reset, Danaher shares appear to have stabilized, making the current pullback an attractive entry point for investors with a 12-month horizon. While the company’s 2025 guidance fell short of expectations, Stifel sees opportunities for top-line growth and margin improvements, driven by new cost-saving initiatives.

The company also highlighted reduced risk in Danaher’s first-quarter performance, particularly regarding academic and government demand, areas where other life sciences firms face more uncertainty.

Looking ahead, EPS acceleration over the next year could push earnings toward $9 per share in fiscal 2026, potentially supporting a valuation rebound. While market conditions in the life sciences sector remain volatile, Stifel believes Danaher’s strong fundamentals and leadership in the tools segment make it a compelling long-term investment.

Danaher Corporation (NYSE:DHR) saw its stock tumble 7% intra-day today after reporting mixed fourth-quarter results. While revenue exceeded expectations, earnings came in slightly below forecasts, leaving investors cautious about the company’s outlook.

The life sciences and diagnostics giant posted adjusted earnings per share of $2.14, just below the projected $2.15. Revenue, however, rose to $6.54 billion, surpassing the consensus estimate of $6.39 billion and reflecting a 2% year-over-year increase. Non-GAAP core revenue edged up 1% compared to the same period last year.

Despite the revenue beat, investor sentiment remained lukewarm due to concerns over forward guidance. For the first quarter of 2025, Danaher anticipates a low-single-digit decline in non-GAAP core revenue year-over-year. However, for the full year, the company expects approximately 3% non-GAAP core revenue growth.

In 2024, Danaher reported total revenue of $23.9 billion, flat compared to the previous year, with non-GAAP core revenue declining 1.5%. Operating cash flow reached $6.7 billion, while non-GAAP free cash flow totaled $5.3 billion.

Danaher Corporation (NYSE:DHR) is a global science and technology innovator, focusing on life sciences, diagnostics, and environmental solutions. The company competes with other major players in the industry, such as Thermo Fisher Scientific and Agilent Technologies. Danaher is known for its strategic acquisitions and continuous innovation, which have helped it maintain a strong market position.

On January 29, 2025, Danaher reported an earnings per share (EPS) of $2.14, aligning with market expectations. The company generated a revenue of approximately $6.54 billion, surpassing the estimated $6.44 billion. This revenue beat highlights Danaher's ability to perform well despite challenges in the biotech sector, as noted by the decline in demand from biotech and pharmaceutical clients.

Despite the revenue success, Danaher's fourth-quarter earnings fell short of Wall Street's profit expectations. The shortfall is linked to reduced demand for tools and services essential for drug development. This weak demand has impacted the company's financial performance, underscoring the challenges faced in the biotech sector, as highlighted by the company's recent earnings report.

Danaher's financial results for the fourth quarter and full year of 2024 showed stronger-than-expected core revenue across all three segments. This contributed to solid cash flow and an expansion in operating margins. Rainer M. Blair, President and CEO, expressed optimism about the company's future, emphasizing its transformation into a focused life sciences and diagnostics innovator.

The company's financial metrics reflect market confidence in its future growth. With a price-to-earnings (P/E) ratio of 46.04, investors have high expectations for Danaher's earnings growth. The price-to-sales ratio of 8.94 and enterprise value to sales ratio of 9.68 indicate a strong valuation relative to sales. Additionally, a debt-to-equity ratio of 0.34 suggests a conservative capital structure, while a current ratio of 1.37 shows sufficient liquidity to cover short-term liabilities.

Danaher Corporation (NYSE:DHR) reported its Q3 results, with EPS of $2.56 coming in better than the Street estimate of $2.26. Revenue was $7.66 billion, compared to the Street estimate of $7.14 billion.

According to the analysts at RBC Capital, the beat above the company’s September 14 positive preannouncement was paced by broad portfolio strength and upside COVID test revenues. However, bioprocessing orders were down a disappointing 20% year-over-year, against tough comps.

For Q4/22, the company expects non-GAAP base business core revenue to be in the high-single-digit percent range. For fiscal 2022, the company raised its non-GAAP core revenue growth estimates to the high-single-digit percent range.

Danaher Corporation (NYSE:DHR) reported its Q3 results, with EPS of $2.56 coming in better than the Street estimate of $2.26. Revenue was $7.66 billion, compared to the Street estimate of $7.14 billion.

According to the analysts at RBC Capital, the beat above the company’s September 14 positive preannouncement was paced by broad portfolio strength and upside COVID test revenues. However, bioprocessing orders were down a disappointing 20% year-over-year, against tough comps.

For Q4/22, the company expects non-GAAP base business core revenue to be in the high-single-digit percent range. For fiscal 2022, the company raised its non-GAAP core revenue growth estimates to the high-single-digit percent range.