) reported earnings of 96 cents a share in the fourth-quarter
2013 which beat the Zacks Consensus Estimate by a penny. The
results increased 10.3% compared to the earnings of 87 cents a
share reported in the prior-year period.
The company's GAAP earnings increased 25% to $1.11 per share
compared with 89 cents a share in the prior-year quarter.
Danaher's proforma earnings in 2013 were $3.42 per share
compared to the last year's figure of $3.23 per share. The
earnings beat the Zacks Consensus Estimate of $3.41 per share by
a penny. Danaher reported GAAP net income of $2.7 billion, or
$3.80 per share, up from $2.3 billion or $3.23 per share in
reported in 2012.
The healthy increase in earnings was mainly attributable to
core revenue growth and better margin expansion. Specific
initiatives for new product development and increased investment
were the other positives for the company.
The company's robust cash and balance sheet position and the
effectiveness of the Danaher Business system were some of the key
catalysts which drove the company's results. In addition, all of
its segments reported a decent year-over-year improvement in
Danaher generated total sales of $5,266.7 million in the
quarter, up 6.0% year over year. Core revenues for the quarter
were up 3.5% year over year, while revenues from acquisitions
were up 3.0%, partially offset by adverse currency translation
effects of 0.5%. Reported revenues exceeded the Zacks Consensus
Estimate of $5,202.0 million by a marginal 1.2%.
Danaher reported revenues of $19.1 billion for the fiscal
2013, up 4.7% from the last year's figure of $18.3 billion.
Danaher's gross margin expanded 33 basis points (bps) to
51.5%. The company's operating profit was $888.0 million, an
increase of 2.9% year over year, while operating margin declined
marginally to 16.9% from 17.3% at the end of the quarter.
Revenues in the
Test & Measurement
segment increased 4.0% to $898.3 million year over year. The
segment operating margin declined to 16.6% from 18.7% in the
Revenues in the
segment were up 10.0% to $936.1 million. The segment reported an
operating margin of 22.5%, a decline of 50 bps from 23.0% in last
Life Sciences and Diagnostics
revenues were up 5.5% year over year to $1,939.6 million. The
operating margin for the quarter was up 250 bps year over year to
Revenues from the
segment grew 3.5% year over year to $590.2 million with operating
margin declining 150 bps to 13.7%.
segment, revenues grew a marginal 1.4% to $902.5 million, but
operating margin dipped 80 bps to 17.3% on a year over year
Balance Sheet & Cash Flow
Danaher exited 2013 with cash and equivalents balance of $3.1
billion versus $1.7 billion in 2012. The company had a long-term
debt balance of $3.4 billion at the year-end 2013, down from $5.3
billion in the previous year.
Danaher's cash flow from operating activities was increased
5.0% to $3,585.3 million compared with $3,415.0 million in the
Concurrent with the earnings release, management provided its
guidance for first-quarter and full year 2014 revenues and
The company has reaffirmed the guidance for the full-year 2014
earnings in the range of $3.60 to $3.75 per share and revenue
growth in the range of 2% to 4%. For the first quarter of 2014,
the company's GAAP earnings are expected to be in the range of 76
cents to 80 cents a share.
Danaher currently carries a Zacks Rank #3 (Hold). Some other
stocks in the same sector worth considering include
Hutchison Whampoa Ltd.
Icahn Enterprises, L.P.
). All these stocks carry a Zacks Rank #2 (Buy).
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