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Will Danaher (DHR) Keep Its Earnings Streak Alive in Q4?
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Danaher Corporation (DHR - Free Report) is set to release fourth-quarter 2020 results on Jan 28, before market open.
The company delivered better-than-expected results in the last four quarters, the earnings surprise being 17%, on average. In the last reported quarter, the company’s earnings of $1.72 per share surpassed the Zacks Consensus Estimate of $1.37 by 25.55%.
In the past three months, Danaher’s shares decreased 0.7% against the industry’s growth of 15%.
Let us delve deeper.
Key Factors and Estimates for Q4
The company’s impressive performances at its Diagnostics and Life Sciences segments are likely to have aided core sales performances in the fourth quarter of 2020. Danaher increased its core sales growth projection (including Cytiva’s impact of 3.5%) to 15% for the quarter from the earlier mentioned low-double-digit growth.
The company anticipates growth of 38.5% in fourth-quarter total revenues from the year-ago comparable quarter. The impacts of acquired assets/divestitures and foreign currency translation are predicted to be positive 24.5% and 2.5%, respectively. Also, the tailwinds related to the pandemic are likely to have boosted fourth-quarter sales by 11-12% year over year.
The Zack Consensus Estimate for fourth-quarter revenues of $6,429 million suggests a 32.1% increase from the year-ago reported figure and 9.3% growth from the previous quarter’s reported number. Notably, the company reported better-than-expected revenue results in three of the last four quarters, while it lagged estimates once. The sales surprise for the four quarters was 3.72%, on average.
For the Life Sciences segment, solid demand for bioprocessing products is likely to have aided the performance. The Zacks Consensus Estimate for the Life Sciences segment’s revenues is pegged at $3,233 million, suggesting a 68.7% year-over-year increase and 10.6% sequential growth. Its sales surprise, on average, for the last four quarters is 3.29%.
For the Diagnostics segment, solid demand for molecular testing products like Cepheid tests is anticipated to have boosted its performance. The Zacks Consensus Estimate for the Diagnostics segment’s revenues for the fourth quarter is pegged at $2,029 million, suggesting growth of 12.4% from the year-ago reported figure and an increase of 7.4% from the sequential reported number. The segment’s average sales surprise for the last four quarters is 5.61%.
For the Environmental & Applied Solutions segment, the company anticipates slight growth from the year-ago quarter. The consensus estimate for the segment’s revenues is pegged at $1,148 million, in line with the year-ago reported number and sequential growth of 7.1%. Its sales surprise, on average, for the last four quarters is 2.73%.
However, uncertainties associated with the pandemic as well as woes related to high costs and expenses, and huge debts are expected to have influenced performance in the quarter. The Zack Consensus Estimate for Danaher’s earnings is pegged at $1.83 per share, suggesting a 43% increase from the year-ago reported figure and growth of 6.4% from the previous quarter’s reported figure.
Earnings Whispers
Our proven model suggests an earnings beat for Danaher 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an earnings ESP of +5.87%, as the Most Accurate Estimate of $1.94 is above the Zacks Consensus Estimate of $1.83.
Danaher Corporation Price, Consensus and EPS Surprise
Zacks Rank: Danaher currently carries a Zacks Rank #2.
Other Stocks That Warrant a Look
Here are some other companies that you may want to consider as according to our model, these too have the right combination of elements to post an earnings beat this quarter:
The Middleby Corporation (MIDD - Free Report) presently has an Earnings ESP of +20.15% and a Zacks Rank #2.
Caterpillar Inc. (CAT - Free Report) currently has an Earnings ESP of +1.82% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Will Danaher (DHR) Keep Its Earnings Streak Alive in Q4?
Danaher Corporation (DHR - Free Report) is set to release fourth-quarter 2020 results on Jan 28, before market open.
The company delivered better-than-expected results in the last four quarters, the earnings surprise being 17%, on average. In the last reported quarter, the company’s earnings of $1.72 per share surpassed the Zacks Consensus Estimate of $1.37 by 25.55%.
In the past three months, Danaher’s shares decreased 0.7% against the industry’s growth of 15%.
Let us delve deeper.
Key Factors and Estimates for Q4
The company’s impressive performances at its Diagnostics and Life Sciences segments are likely to have aided core sales performances in the fourth quarter of 2020. Danaher increased its core sales growth projection (including Cytiva’s impact of 3.5%) to 15% for the quarter from the earlier mentioned low-double-digit growth.
The company anticipates growth of 38.5% in fourth-quarter total revenues from the year-ago comparable quarter. The impacts of acquired assets/divestitures and foreign currency translation are predicted to be positive 24.5% and 2.5%, respectively. Also, the tailwinds related to the pandemic are likely to have boosted fourth-quarter sales by 11-12% year over year.
The Zack Consensus Estimate for fourth-quarter revenues of $6,429 million suggests a 32.1% increase from the year-ago reported figure and 9.3% growth from the previous quarter’s reported number. Notably, the company reported better-than-expected revenue results in three of the last four quarters, while it lagged estimates once. The sales surprise for the four quarters was 3.72%, on average.
For the Life Sciences segment, solid demand for bioprocessing products is likely to have aided the performance. The Zacks Consensus Estimate for the Life Sciences segment’s revenues is pegged at $3,233 million, suggesting a 68.7% year-over-year increase and 10.6% sequential growth. Its sales surprise, on average, for the last four quarters is 3.29%.
For the Diagnostics segment, solid demand for molecular testing products like Cepheid tests is anticipated to have boosted its performance. The Zacks Consensus Estimate for the Diagnostics segment’s revenues for the fourth quarter is pegged at $2,029 million, suggesting growth of 12.4% from the year-ago reported figure and an increase of 7.4% from the sequential reported number. The segment’s average sales surprise for the last four quarters is 5.61%.
For the Environmental & Applied Solutions segment, the company anticipates slight growth from the year-ago quarter. The consensus estimate for the segment’s revenues is pegged at $1,148 million, in line with the year-ago reported number and sequential growth of 7.1%. Its sales surprise, on average, for the last four quarters is 2.73%.
However, uncertainties associated with the pandemic as well as woes related to high costs and expenses, and huge debts are expected to have influenced performance in the quarter. The Zack Consensus Estimate for Danaher’s earnings is pegged at $1.83 per share, suggesting a 43% increase from the year-ago reported figure and growth of 6.4% from the previous quarter’s reported figure.
Earnings Whispers
Our proven model suggests an earnings beat for Danaher 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an earnings ESP of +5.87%, as the Most Accurate Estimate of $1.94 is above the Zacks Consensus Estimate of $1.83.
Danaher Corporation Price, Consensus and EPS Surprise
Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote
Zacks Rank: Danaher currently carries a Zacks Rank #2.
Other Stocks That Warrant a Look
Here are some other companies that you may want to consider as according to our model, these too have the right combination of elements to post an earnings beat this quarter:
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +3.34% and it currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Middleby Corporation (MIDD - Free Report) presently has an Earnings ESP of +20.15% and a Zacks Rank #2.
Caterpillar Inc. (CAT - Free Report) currently has an Earnings ESP of +1.82% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>