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Danaher (DHR) Q1 Revenue Projections Increase, Shares Gain

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Danaher Corporation (DHR - Free Report) yesterday updated its first-quarter 2021 revenue guidance. The impressive projection boosted sentiments for the stock, with its price increasing 3.4% and ending the trading session at $242.84.

The Washington, DC-based manufacturer of commercial, industrial, consumer and professional products is slated to report its first-quarter 2021 results on April 22, before the opening bell.

Inside the Headlines

The company expects growth in its core revenues to be above the high-end of the previously provided mid- to high-teens range. To be specific, non-GAAP core revenues, including the impacts of Cytiva, are anticipated to be 29%. Notably, Cytiva is a stand-alone company and represents the BioPharma business of General Electric Company’s (GE - Free Report) . The acquisition was completed by Danaher in March 2020.

Danaher also expects total revenues for the first quarter to increase 57% year over year. Strengthening businesses are expected to have aided its performance, with strength in the Diagnostics and Life Sciences segments.

In January 2021, the company expected its Life Sciences segment to gain from solid demand for its bioprocessing products. Also, surging demand for molecular testing might have aided the Diagnostics segment.

Notably, Danaher’s Life Sciences revenues accounted for 49.7% of total revenues in the fourth quarter of 2020. The Diagnostics segment contributed 32.9% to the quarter’s top line.

Zacks Rank, Price Performance and Earnings Estimates

With a market capitalization of $165.7 billion, Danaher currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from strengthening business across portfolio, shareholder-friendly policies and inorganic activities. However, high debts and costs as well as woes related to international businesses are expected to be concerning.

In the past three months, the company’s share price has increased 2.6% as compared with the industry’s growth of 10.4%.




 

Also, the Zacks Consensus Estimate of Danaher’s earnings is pegged at $1.67 for the first quarter of 2021 and $7.49 for 2021, reflecting no change and a decline of 0.1% from the respective 60-day-ago figures.

Danaher Corporation Price and Consensus

 

Danaher Corporation Price and Consensus

Danaher Corporation price-consensus-chart | Danaher Corporation Quote

Stocks to Consider

Two better-ranked stocks in the industry are Griffon Corporation (GFF - Free Report) and Macquarie Infrastructure Company (MIC - Free Report) . Both companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. In the past 60 days, earnings estimates for these companies improved for the current year.

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