Danaher Corporation DHR is scheduled to release second-quarter 2024 results on Jul 23, before market open.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.6%. In the last reported quarter, its earnings of $1.92 per share beat the consensus estimate of $1.72 by 11.6%.
Let’s see how things have shaped up for Danaher this earnings season.
Key Factors and Estimates for Q2
Strength in the molecular diagnostics business, driven by increased respiratory and non-respiratory disease tests, 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 both instruments and consumables end markets.
The company’s Life Sciences segment has been reaping the benefits from stable demand in the academic and applied markets and strong momentum in the genomics consumables business. Also, growth in demand for plasmids and proteins is likely to have been beneficial for the segment.
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.
However, decreased demand in the bioprocessing business is likely to have hurt the Biotechnology segment’s revenues. We expect the segment’s revenues to be $1.6 billion, indicating a decline of 13.4% year over year.
The company has been witnessing escalating costs of sales, which are likely to weigh on its bottom-line results. Also, given its exposure to international markets, foreign currency headwinds are likely to have affected its profitability.
We expect the company’s revenues to be $5.6 million, indicating a decrease of 22.1% year over year. Adjusted earnings are expected to be $1.57 per share, indicating a 23.3% decrease from the year-ago quarter’s reported number.
Danaher Corporation Price and EPS Surprise 
Danaher Corporation price-eps-surprise | Danaher Corporation Quote
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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.58. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Danaher presently carries a Zacks Rank of 3.
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.
ITT Inc. ITT has an Earnings ESP of +3.43% 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 second-quarter 2024 results on Aug 1. ITT’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.
Allegion plc ALLE has an Earnings ESP of +1.42% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 24.
Allegion’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.6%.
3M Company MMM has an Earnings ESP of +1.65% and a Zacks Rank of 3, at present. The company is scheduled to release second-quarter results on Jul 26.
3M’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 16.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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.
