) reported earnings of 87 cents a share in the fourth quarter of
2012, in line with the Zacks Consensus Estimate. Despite the
macroeconomic challenges, Danaher posted year-over-earnings
growth of 10.1%.
On a GAAP basis, Danaher reported earnings of 89 cents a
share, up 12.1% from the prior-year earnings of 79 cents per
The company generated total sales of $4.97 billion in the
quarter, up 5.5% year over year. Core revenues for the quarter
were up 3.5%. The increase in revenues was primarily attributable
to currency fluctuations and the prevailing macroeconomic
headwinds. However, the company continues to benefit from product
innovations and go-to-market initiatives.
Revenues in the
Test & Measurement
segment edged up 0.9% to $863.7 million. Revenue growth was
driven by overall improvement in the segment's business. The
segment recorded an operating income of $161.8 million,
reflecting a decline of 11.9% year over year with an operating
margin of 18.7%.
revenues grew 5.5% during the quarter to $850.6 million. The
segment reported an operating profit of $196.0 million with an
operating margin of 23.0%. The company's waters business is
gaining good momentum with the acquisition of Dingli. In
addition, the company's retail and commercial petroleum business
was also been strong.
Life Sciences and Diagnostics
reported a revenue increase of 6.3% year over year to $1.8
million. The operating profit for the quarter was up 16.2% year
over year while the operating margin was 14.2%. The company's
diagnostics division has been performing impressively based on
the increasing demand for its instruments.
The company completed the acquisition of Aperio Technologies
during the quarter, which has a portfolio of products covering
scanning, managing, viewing and analyzing images. In addition,
the Beckman Coulter acquisition is also showing good progress.
Revenues from the
segment grew 3.6% year over year to $570.5 million with operating
profit growing 44.1% and operating margin of 15.2%. The company
witnessed strong sales of its general dentistry consumables and
orthodontic solution across all major end markets.
segment, revenues grew 9.9% to $852.7 million with operating
income growth of 9.6% and operating margin of 18.1%. Strong
growth in the packaging design needs the synergies from the
X-Rite acquisition boosted the segment sales during the quarter.
For the fourth quarter, gross margin expanded 123 basis points
year over year to 51.2%, while operating margin in the quarter
expanded 80 basis points year over year to 17.3%. Despite the
currency fluctuations and macroeconomic pressures, Danaher
Business System led to the margin increase.
Concurrent with the earnings release, management provided its
guidance for 2013. Danaher expects to close the pending
acquisition of Apex Tool Group in 2013 and expects full year 2013
earnings to be in the range of $3.32 to $3.47 a share. For the
first quarter of 2013, the company expects earnings in the range
of 72 cents to 77 cents a share.
Danaher currently carries Zacks Rank #3 (Hold) while some of
its peers worth considering, like
) have Zacks Rank #2 (Buy).
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