We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Danaher Corporation (DHR - Free Report) has reported impressive results for the first quarter of 2021, with earnings surpassing estimates by 50.9%. Also, the company’s sales surpassed the Zacks Consensus Estimate by 0.6%.
Danaher’s adjusted earnings were $2.52 per share, which surpassed the Zacks Consensus Estimate of $1.67. Also, the bottom line increased 140% from the year-ago quarter’s figure of $1.05 mainly on sales growth.
Revenue Details
In the quarter under review, the company’s net sales were $6,858 million, reflecting year-over-year growth of 57.9%. The results were driven by solid segmental performances. Organic sales in the quarter increased 20% and foreign-currency translations had a positive impact of 3.5%. Also, acquisitions/divestments boosted sales by 34.5%.
As noted, Cytiva had a 10% positive contribution to sales growth in the quarter. Organic sales, including the impact of Cytiva, increased 30% year over year. Also, the pandemic-induced demand for products boosted sales by 20%.
Further, the company’s top line surpassed the Zacks Consensus Estimate of $6,819 million.
It reports net sales under three segments — Life Sciences, Diagnostics, and Environmental & Applied Solutions. The segmental information is briefly discussed below:
Revenues from Life Sciences totaled $3,546 million, rising 114.9% year over year. Foreign-currency translations boosted sales by 4%. Core sales including the impact of Cytiva grew 41.5% year over year.
Revenues from Diagnostics grossed $2,178 million, increasing 34% year over year. The improvement came on the back of a 31% rise in core sales and a 3% gain from foreign-currency translations.
Revenues from Environmental & Applied Solutions totaled $1,134 million, increasing 6.5% year over year. Core sales expanded 3.5%, while acquisitions and foreign currency translation had positive impacts of 0.5% and 2.5%, respectively.
Margin Profile
In the quarter under review, Danaher’s cost of sales increased 37.1% year over year to $2,605 million. It represented 38% of net sales compared with 43.7% in the year-ago quarter. Gross profit increased 74.1% to $4,253 million, while margin increased 570 basis points (bps) to 62%.
Selling, general and administrative expenses of $1,876 million witnessed a year-over-year increase of 28.7%. As a percentage of net sales, it represented 27.4% versus 33.6% in the year-ago quarter. Research and development expenses were $380 million, which rose 32.4%. It represented 5.5% of net sales versus 6.6% in the year-ago quarter.
Operating income in the quarter increased 186.1% year over year to $1,997 million. Operating margin increased 1300 bps to 29.1%. Interest expenses in the quarter totaled $58 million, higher than $47 million reported in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the first quarter, Danaher had cash and cash equivalents of $6,330 million, up from $6,035 million at the end of the last reported quarter. Long-term debt balance decreased 4.4% sequentially to $20,267 million. In the first three months of 2021, the company repaid $279 million borrowings, with a maturity of more than 90 days.
In the first three months of 2021, Danaher generated net cash of $1,871 million from operating activities (continuing operations), reflecting a year-over-year increase of 126.5%. Capital used for purchasing property, plant and equipment totaled $251 million versus $133 million in the comparable period of the previous year. Free cash flow in the quarter improved 135% to $1,632 million.
The company paid out dividends worth $169 million to its shareholders in the quarter, reflecting an increase of 22.5% from the previous year.
Outlook
In the quarters ahead, Danaher expects to benefit from a solid product portfolio, dedicated workforce and a strong balance sheet.
For the second quarter of 2021, the company expects core revenues, including Cytiva, to grow in the mid-20 percent range. The same is predicted to increase in high-teens percent range in 2021, whereas it recorded 9.5% in 2020.
Danaher Corporation Price, Consensus and EPS Surprise
Astec Industries delivered a positive earnings surprise of 172.72%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 21.35%, on average, in the trailing four quarters.
Applied Industrial delivered a positive earnings surprise of 21.92%, on average, in the trailing four quarters.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Danaher's (DHR) Q1 Earnings & Revenues Surpass Estimates
Danaher Corporation (DHR - Free Report) has reported impressive results for the first quarter of 2021, with earnings surpassing estimates by 50.9%. Also, the company’s sales surpassed the Zacks Consensus Estimate by 0.6%.
Danaher’s adjusted earnings were $2.52 per share, which surpassed the Zacks Consensus Estimate of $1.67. Also, the bottom line increased 140% from the year-ago quarter’s figure of $1.05 mainly on sales growth.
Revenue Details
In the quarter under review, the company’s net sales were $6,858 million, reflecting year-over-year growth of 57.9%. The results were driven by solid segmental performances. Organic sales in the quarter increased 20% and foreign-currency translations had a positive impact of 3.5%. Also, acquisitions/divestments boosted sales by 34.5%.
As noted, Cytiva had a 10% positive contribution to sales growth in the quarter. Organic sales, including the impact of Cytiva, increased 30% year over year. Also, the pandemic-induced demand for products boosted sales by 20%.
Further, the company’s top line surpassed the Zacks Consensus Estimate of $6,819 million.
It reports net sales under three segments — Life Sciences, Diagnostics, and Environmental & Applied Solutions. The segmental information is briefly discussed below:
Revenues from Life Sciences totaled $3,546 million, rising 114.9% year over year. Foreign-currency translations boosted sales by 4%. Core sales including the impact of Cytiva grew 41.5% year over year.
Revenues from Diagnostics grossed $2,178 million, increasing 34% year over year. The improvement came on the back of a 31% rise in core sales and a 3% gain from foreign-currency translations.
Revenues from Environmental & Applied Solutions totaled $1,134 million, increasing 6.5% year over year. Core sales expanded 3.5%, while acquisitions and foreign currency translation had positive impacts of 0.5% and 2.5%, respectively.
Margin Profile
In the quarter under review, Danaher’s cost of sales increased 37.1% year over year to $2,605 million. It represented 38% of net sales compared with 43.7% in the year-ago quarter. Gross profit increased 74.1% to $4,253 million, while margin increased 570 basis points (bps) to 62%.
Selling, general and administrative expenses of $1,876 million witnessed a year-over-year increase of 28.7%. As a percentage of net sales, it represented 27.4% versus 33.6% in the year-ago quarter. Research and development expenses were $380 million, which rose 32.4%. It represented 5.5% of net sales versus 6.6% in the year-ago quarter.
Operating income in the quarter increased 186.1% year over year to $1,997 million. Operating margin increased 1300 bps to 29.1%. Interest expenses in the quarter totaled $58 million, higher than $47 million reported in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the first quarter, Danaher had cash and cash equivalents of $6,330 million, up from $6,035 million at the end of the last reported quarter. Long-term debt balance decreased 4.4% sequentially to $20,267 million. In the first three months of 2021, the company repaid $279 million borrowings, with a maturity of more than 90 days.
In the first three months of 2021, Danaher generated net cash of $1,871 million from operating activities (continuing operations), reflecting a year-over-year increase of 126.5%. Capital used for purchasing property, plant and equipment totaled $251 million versus $133 million in the comparable period of the previous year. Free cash flow in the quarter improved 135% to $1,632 million.
The company paid out dividends worth $169 million to its shareholders in the quarter, reflecting an increase of 22.5% from the previous year.
Outlook
In the quarters ahead, Danaher expects to benefit from a solid product portfolio, dedicated workforce and a strong balance sheet.
For the second quarter of 2021, the company expects core revenues, including Cytiva, to grow in the mid-20 percent range. The same is predicted to increase in high-teens percent range in 2021, whereas it recorded 9.5% in 2020.
Danaher Corporation Price, Consensus and EPS Surprise
Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Astec Industries, Inc. (ASTE - Free Report) , Dover Corporation (DOV - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) . While Astec Industries currently sports a Zacks Rank #1 (Strong Buy), Dover and Applied Industrial carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Astec Industries delivered a positive earnings surprise of 172.72%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 21.35%, on average, in the trailing four quarters.
Applied Industrial delivered a positive earnings surprise of 21.92%, on average, in the trailing four quarters.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>