Back to top

Image: Shutterstock

Danaher (DHR) to Post Q2 Earnings: What's in the Offing?

Read MoreHide Full Article

Danaher Corporation (DHR - Free Report) is set to release second-quarter 2021 results on Jul 22, before market open.

The company delivered impressive results in the last four quarters, beating estimates on all occasions, with an earnings surprise of 31.34%, on average. In the last reported quarter, the company’s earnings of $2.52 per share surpassed the Zacks Consensus Estimate of $1.67 by 50.90%.

In the past three months, Danaher’s shares have gained 17.8% as compared with the industry’s growth of 5.2%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Let us delve deeper.

Key Factors and Estimates for Q2

Danaher has been benefiting from the pandemic-related tailwinds over the past few quarters, with 20% sales growth recorded in the first quarter of 2021. The same trend is expected to have continued in the second quarter, with the company expecting a sales increase in low-double digits. Solid product offerings, focus on innovation and synergistic gains from buyouts are likely to have been other advantages.

For second-quarter 2021, the company anticipated core sales, including the impact of Cytiva, to grow in mid-20%. The Zack Consensus Estimate for second-quarter revenues is pegged at $6,704 million, suggesting a 26.6% increase from the year-ago reported figure and a 2.2% decline from the previous quarter’s reported number. Notably, the company reported better-than-expected revenue results in the last four quarters, the average surprise being 3.5%.

For the Life Sciences segment, healthy demand for bioprocessing products, especially Pall Biotech and Cytiva, are likely to have aided the quarterly performance. Strengthening the non-COVID bioprocessing business is also likely to have been a tailwind. The Zacks Consensus Estimate for the Life Sciences segment’s revenues is pegged at $3,440 million, suggesting an increase of 30.2% from the year-ago quarter’s reported figure.

Demand for molecular-testing products (like Cepheid tests) is likely to have been strong in the to-be-reported quarter and, thus, proving a boon for the Diagnostics segment. The Zacks Consensus Estimate for the Diagnostics segment’s revenues for the second quarter is pegged at $2,110 million, suggesting growth of 27.1% from the year-ago reported figure.

For the Environmental & Applied Solutions segment, healthy demand for equipment and solid consumables business is likely to have been tailwinds. The consensus estimate for the segment’s revenues is pegged at $1,143 million, suggesting a 14.9% rise from the year-ago reported number.

However, woes related to international exposure, high costs and expenses, and huge debts are expected to have affected the company’s quarterly performance. The Zack Consensus Estimate for Danaher’s earnings of $2.04 per share suggests a 41.7% increase from the year-ago reported figure and a decline of 19% from the previous quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively suggest 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 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.04.

Danaher Corporation Price, Consensus and EPS Surprise

 

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 #3.

Stocks That Warrant a Look

Here are some companies that you may want to consider as according to our model, these have the right combination of elements to post an earnings beat this quarter:

ITT Inc. (ITT - Free Report) currently has an Earnings ESP of +1.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Crane Co. (CR - Free Report) presently has an Earnings ESP of +2.63% and a Zacks Rank #3.

Honeywell International Inc. (HON - Free Report) currently has an Earnings ESP of +1.16% and a Zacks Rank #3.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Honeywell International Inc. (HON) - free report >>

Danaher Corporation (DHR) - free report >>

ITT Inc. (ITT) - free report >>

Crane Co. (CR) - free report >>

Published in