Danaher Corporation ( DHR Quick Quote 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. 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. Earnings ESP: