Danaher Corporation (DHR - Free Report) has been benefiting from solid demand for bioprocessing products, therapeutics and products related to molecular testing. Also, strength across the company’s consumables business and solid demand for equipment have been driving its performance. The impact of COVID-related testing is also predicted to boost its sales in the near term. Danaher expects year-over-year core revenue growth in the range of low-single digits for the second quarter of 2022 and mid-single digits for 2022.
The company intends to strengthen and expand its businesses by adding assets. DHR’s acquisition of Aldevron (August 2021) is anticipated to enhance the company's foothold in the genomic medicine field. Also, it added Vanrx Pharmasystems and Swift Biosciences to its portfolio in first-quarter 2021. In first-quarter 2022, acquisitions boosted the company’s sales by 2%.
Danaher remains committed to rewarding shareholders handsomely through dividend payments and share buybacks. In 2021 and the first three months of 2022, the company used $742 million and $191 million for paying out dividends, respectively. Notably, the quarterly dividend rate was hiked by 4 cents per share in February 2022.
However, escalating costs and expenses have been a major concern for the company over time. In first-quarter 2022, its cost of sales increased 14.5% year over year, while selling, general and administrative expenses rose 11.5%. Also, its research and development expenses increased 16.1% in the quarter. Inflationary pressures and woes related to supply-chain restrictions might continue adversely impacting its margins and profitability in the near term.
Its high-debt profile remains a concern too. Exiting first-quarter 2022, its long-term debt was $21.8 billion. In December 2021, the company issued $1 billion worth of senior notes and redeemed notes worth €800 million. Further, a rise in debt levels can raise its financial obligations.
The Zacks Rank #3 (Hold) stock has lost 23.4% compared with a 22.4% decline of its industry in the past six months.
Stocks to Consider
Some better-ranked companies from the Zacks Conglomerates sector are discussed below:
Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). GFF’s earnings surprise in the last four quarters was 97%, on average. You can see the complete list of today’s Zacks #1 Rank stocks
In the past 60 days, Griffon’s earnings estimates have increased 80.5% for fiscal 2022 (ending September 2022). The stock has declined 9.5% in the past six months.
Carlisle Companies Incorporated (CSL - Free Report) presently flaunts a Zacks Rank of 1. CSL delivered a trailing four-quarter earnings surprise of 23%, on average.
In the past 60 days, Carlisle’s earnings estimates have increased 22.8% for 2022. CSL’s shares have declined 1.3% in the past six months.
3M Company (MMM - Free Report) presently carries a Zacks Rank #2 (Buy). MMM delivered a trailing four-quarter earnings surprise of 13.8%, on average.
Earnings estimates of MMM have increased 6.1% for 2022 in the past 60 days. Its shares have declined 25.5% in the past six months.
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Danaher Corporation (DHR - Free Report) has been benefiting from solid demand for bioprocessing products, therapeutics and products related to molecular testing. Also, strength across the company’s consumables business and solid demand for equipment have been driving its performance. The impact of COVID-related testing is also predicted to boost its sales in the near term. Danaher expects year-over-year core revenue growth in the range of low-single digits for the second quarter of 2022 and mid-single digits for 2022.
The company intends to strengthen and expand its businesses by adding assets. DHR’s acquisition of Aldevron (August 2021) is anticipated to enhance the company's foothold in the genomic medicine field. Also, it added Vanrx Pharmasystems and Swift Biosciences to its portfolio in first-quarter 2021. In first-quarter 2022, acquisitions boosted the company’s sales by 2%.
Danaher remains committed to rewarding shareholders handsomely through dividend payments and share buybacks. In 2021 and the first three months of 2022, the company used $742 million and $191 million for paying out dividends, respectively. Notably, the quarterly dividend rate was hiked by 4 cents per share in February 2022.
However, escalating costs and expenses have been a major concern for the company over time. In first-quarter 2022, its cost of sales increased 14.5% year over year, while selling, general and administrative expenses rose 11.5%. Also, its research and development expenses increased 16.1% in the quarter. Inflationary pressures and woes related to supply-chain restrictions might continue adversely impacting its margins and profitability in the near term.
Its high-debt profile remains a concern too. Exiting first-quarter 2022, its long-term debt was $21.8 billion. In December 2021, the company issued $1 billion worth of senior notes and redeemed notes worth €800 million. Further, a rise in debt levels can raise its financial obligations.
The Zacks Rank #3 (Hold) stock has lost 23.4% compared with a 22.4% decline of its industry in the past six months.
Stocks to Consider
Some better-ranked companies from the Zacks Conglomerates sector are discussed below:
Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). GFF’s earnings surprise in the last four quarters was 97%, on average. You can see the complete list of today’s Zacks #1 Rank stocks
In the past 60 days, Griffon’s earnings estimates have increased 80.5% for fiscal 2022 (ending September 2022). The stock has declined 9.5% in the past six months.
Carlisle Companies Incorporated (CSL - Free Report) presently flaunts a Zacks Rank of 1. CSL delivered a trailing four-quarter earnings surprise of 23%, on average.
In the past 60 days, Carlisle’s earnings estimates have increased 22.8% for 2022. CSL’s shares have declined 1.3% in the past six months.
3M Company (MMM - Free Report) presently carries a Zacks Rank #2 (Buy). MMM delivered a trailing four-quarter earnings surprise of 13.8%, on average.
Earnings estimates of MMM have increased 6.1% for 2022 in the past 60 days. Its shares have declined 25.5% in the past six months.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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