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Earnings Scorecard: Danaher - Analyst Blog

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Danaher Corporation ( DHR ), a leading industrial company is engaged in designing, manufacturing and marketing of innovative products, services, and technologies. In the first quarter of fiscal 2012, the company's sales increased across all its five business segments. Moreover, Danaher's diluted earnings per share of 73 cents surpassed the Zacks Consensus Estimate by 3 cents.

Highlights from the Quarter

Net sales in first-quarter 2012 spiked roughly 31% year over year to a record $4,316.2 million, beating the Zacks Consensus Estimate of $4313 million. Sales were boosted by the company's acquisition of Beckman Coulter. Additionally, the company's improvement in the emerging markets and increased product demand also contributed to sales growth.

Earnings per share reported in the quarter were 73 cents, up 20% year over year, driven by strong revenue growth and operating performance.

Agreement of Analysts

Among the analysts covering the stock in the last 7 days, none revised their estimates for the second quarter of 2012. There was one upward revision for 2012 and no revision for 2013. However, in the last 30 days, 11 analysts raised their estimates for 2012 and 7 for 2013. There was one downward revision both for 2012 and 2013.

The analysts believe merger and acquisition strategy will accelerate the company's earnings growth and improve its financial results in the quarters ahead. Further, the company's organic growth is expected to increase manifold driven by the rise in investments in research and development activities.

Magnitude of Estimate Revisions

In the last 7 days, the estimate for second quarter 2012 remained stagnant at 81 cents and increased by a cent to $3.32 for 2012. Estimate for 2013 stood at $3.71, showing no movement.

Summary

The company's well-managed distinct business strategy and competent operating outlook will encourage it to achieve better financial performance compared with its peers. Danaher's improved acquisition strategy is expected to augment its sales growth.

In addition, Danaher uses a set of tools and processes called the Danaher Business System (DBS), which is especially designed to continuously advance business performance in the critical areas of quality, delivery, cost and innovation.

Danaher Corporation continues to expand its product portfolio and geographical presence, especially in the emerging markets while making a number of strategic acquisitions. Furthermore, the investment initiative taken by the company is highly successful in the market it is operating.The company currently holds a long-term Neutral recommendation and also bears Zacks #3 Rank, implying a short-term Hold rating.

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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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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