) released its fourth-quarter and fiscal 2011 results reporting
GAAP earnings from continuing operations of 79 cents, a penny above
the Zacks Consensus Estimate of 78 cents.
Non-Gaap earnings were 81 cents a share, which was also above
the Zacks Consensus Estimate and was up 26.5% year over year.
For the full year on GAAP basis earnings were $2.53 a share
while on a non-GAAP basis it was $2.83 a share which was 28.5%
above fiscal 2010. The company's restructuring and structural cost
actions have made it possible for the company to achieve record
fourth quarter results.
For the fourth quarter, the company generated sales of $4.7
billion, an increase of 37.4% year over year. Core revenue for the
quarter was up 4%. The impact of acquisitions, primarily the
acquisition of Beckman Coulter increased revenues by 33.5% for the
quarter. Danaher continues to benefit from product innovations and
its go-to-market initiatives.
Test & Measurement revenue increased 7% for the quarter,
with core revenues up 2.5%, Environmental revenue surged 8.5%
during the quarter, with core revenues up 5.5%. Life Sciences &
Diagnostics division had a strong quarter with revenues increasing
153.5% year over year (driven by the Coulter's acquisition, which
is not taken as core yet), while the core revenues were up 6%.
Dental revenues grew 5.5% year over year with core revenues up
2.5%. Revenues in the Industrial Technology segment increased 15%
while core revenues was up 3%.
For the fourth quarter, gross margin decreased 250 basis points
to 49.3% while the Operating margin in the quarter contracted 80
basis points to 16.5%. The decline in both margins was primarily
due to the incremental year-over-year restructuring activity and
the impact of non-cash acquisition-related costs and lower margins
at Beckman Coulter.
Operating margin in Test & Measurement increased to 21.5%,
for the Environmental segment margin marginally increased to 21.9%,
Life Sciences & Diagnostics was down 10 basis points to 13%,
Dental was down 120 basis points to 10.9% and Industrial
Technologies margin also declined 70 basis points to 18.1%.
Balance Sheet and Cash Flow
The company exited the year with cash and cash equivalents of
$537 million and a debt equity ratio of 23.5%.
The company's result for the quarter is quite impressive as its
performance gained momentum in all business segments. Led by good
fourth-quarter and full year 2011 performance and improving market
condition, Danaher stated that it expects first quarter earnings to
be in the range of 66 cents to 71 cents and reaffirmed its full
year guidance in the range of $3.20 to $3.35 a share.
Danaher currently has a Zacks Rank #3 which implies short term
'Hold' rating on the stock.
DANAHER CORP (
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