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Danaher Corporation (DHR - Free Report) reported better-than-expected results for second-quarter 2018. This upside stemmed from solid end-markets demand, new product innovation investments and effective implementation of the Danaher Business System (DBS).
Earnings & Revenues
Quarterly adjusted earnings came in at $1.15 per share, higher than the year-ago tally of 99 cents per share. The bottom line also outpaced the Zacks Consensus Estimate of $1.09.
Revenues in the reported quarter came in at $4,981 million, higher than $4,510.1 million recorded in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $4,920 million.
Segmental Details
Revenues of the Life Sciences segment in the second quarter came in at $1,605.2 million, up 16% year over year.
Diagnostics sales came in at $1,550.9 million, up 7.7% year over year.
The top-line performance of the Dental segment improved 4.4%, year over year, to $733.4 million.
Revenues of the Environmental & Applied Solutions segment were 1,091.5 million, up 11% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
Cost of sales in the reported quarter was $2,163.0 million, higher than $2,027.8 million recorded in the year-ago period. Gross profit margin expanded 60 basis points (bps) to 56.6%.
Selling, general and administrative expenses in the second quarter were $1,637.9 million, higher than $1,522.3 million incurred in the year-ago quarter. The company’s research and development expenses flared up 10% year over year in the quarter. Operating margin in the reported quarter was 17.4%, up 240 bps year over year.
Balance Sheet/Cash Flow
Exiting the April-June quarter, Danaher had cash and cash equivalents of $904 million, higher than $630.3 million recorded as of Dec 31, 2017. Long-term debt was $11,145.6 million, higher than $10,327.4 million recorded at the end of 2017.
In first-half 2018, Danaher generated $1,864.9 cash from operating activities, up 18.7% year-over-year. Capital expenditure in the reported quarter totaled $291.7 million, down 4.8% year over year.
Revised EPS View
Danaher has raised its full-year 2018 guidance. This Zacks Rank #3 (Hold) stock now expects adjusted net earnings per share of $4.43-$4.50 compared to the prior guidance of $4.38-$4.45.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Raven Industries, Inc. also flaunts a Zacks Rank of 1. The company’s EPS is projected to rise 10% over the next three to five years.
Sumitomo Corp. (SSUMY - Free Report) is another Zacks #1 Ranked company. The company’s EPS will likely be up 5.5% during the same time frame.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Danaher (DHR) Tops Q2 Earnings on DBS Strength & Robust Sales
Danaher Corporation (DHR - Free Report) reported better-than-expected results for second-quarter 2018. This upside stemmed from solid end-markets demand, new product innovation investments and effective implementation of the Danaher Business System (DBS).
Earnings & Revenues
Quarterly adjusted earnings came in at $1.15 per share, higher than the year-ago tally of 99 cents per share. The bottom line also outpaced the Zacks Consensus Estimate of $1.09.
Revenues in the reported quarter came in at $4,981 million, higher than $4,510.1 million recorded in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $4,920 million.
Segmental Details
Revenues of the Life Sciences segment in the second quarter came in at $1,605.2 million, up 16% year over year.
Diagnostics sales came in at $1,550.9 million, up 7.7% year over year.
The top-line performance of the Dental segment improved 4.4%, year over year, to $733.4 million.
Revenues of the Environmental & Applied Solutions segment were 1,091.5 million, up 11% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
Danaher Corporation Price, Consensus and EPS Surprise | Danaher Corporation Quote
Costs & Margins
Cost of sales in the reported quarter was $2,163.0 million, higher than $2,027.8 million recorded in the year-ago period. Gross profit margin expanded 60 basis points (bps) to 56.6%.
Selling, general and administrative expenses in the second quarter were $1,637.9 million, higher than $1,522.3 million incurred in the year-ago quarter. The company’s research and development expenses flared up 10% year over year in the quarter. Operating margin in the reported quarter was 17.4%, up 240 bps year over year.
Balance Sheet/Cash Flow
Exiting the April-June quarter, Danaher had cash and cash equivalents of $904 million, higher than $630.3 million recorded as of Dec 31, 2017. Long-term debt was $11,145.6 million, higher than $10,327.4 million recorded at the end of 2017.
In first-half 2018, Danaher generated $1,864.9 cash from operating activities, up 18.7% year-over-year. Capital expenditure in the reported quarter totaled $291.7 million, down 4.8% year over year.
Revised EPS View
Danaher has raised its full-year 2018 guidance. This Zacks Rank #3 (Hold) stock now expects adjusted net earnings per share of $4.43-$4.50 compared to the prior guidance of $4.38-$4.45.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Hitachi Ltd. (HTHIY - Free Report) sports a Zacks Rank #1 (Strong Buy). The company’s earnings per share (EPS) are predicted to grow 13% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
Raven Industries, Inc. also flaunts a Zacks Rank of 1. The company’s EPS is projected to rise 10% over the next three to five years.
Sumitomo Corp. (SSUMY - Free Report) is another Zacks #1 Ranked company. The company’s EPS will likely be up 5.5% during the same time frame.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>