Back to top

Image: Shutterstock

Danaher (DHR) to Report Q4 Earnings: What's in the Offing?

Read MoreHide Full Article

Danaher Corporation (DHR - Free Report) is scheduled to release fourth-quarter 2021 results on Jan 27, before market open.

The conglomerate delivered better-than-expected results in the last four quarters, the earnings surprise being 24.05%, on average. In the last reported quarter, the company’s earnings of $2.39 surpassed the Zacks Consensus Estimate of $2.14 by 11.68%.

In the past three months, shares of Danaher have lost 8.4% compared with the industry’s decline of 7.2%.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Let us delve deeper.

Key Factors & Estimates for Q4

Danaher’s performance in the fourth quarter of 2021 is anticipated to have benefited from the better-than-expected performance at its Diagnostics and Life Sciences segments. Strengthening demand for respiratory and non-respiratory testing products is predicted to have boosted the molecular diagnostics business. Then again, healthy bioprocessing businesses, evident from Cytiva’s growth, are likely to have benefited.

Danaher is anticipated to have also gained from healthy growth in the Environmental & Applied Solutions segment. The company’s focus on innovation and product quality, as well as synergies from acquired assets, are expected to have added vigor to the quarter’s performance.

For the fourth quarter of 2021, Danaher anticipates year-over-year revenue growth in the high-teens to low-twenties percentage range. Core sales growth is predicted to be in high-teens and base revenues are expected to increase 10% year over year. This compares favorably with an increase of low to mid-teens percentage for core sales and growth of high-single digits for base revenues stated previously.

The Zacks Consensus Estimate for Danaher’s fourth-quarter revenues of $7,806 million suggests a 15.5% increase from the year-ago reported figure and 8% growth from the previous quarter’s number.

For the Diagnostics segment, the consensus estimate is pegged at $2,718 million for the fourth quarter, suggesting growth of 22.1% from the year-ago reported figure and an increase of 11% from the previous quarter. The same for the Life Sciences segment, pegged at $3,917 million, suggests 16.5% and 7.8% increases from the year-ago and previous quarters’ reported numbers, respectively.

The Zacks Consensus Estimate for Environmental & Applied Solutions’ revenues is pegged at $1,231 million, suggesting a 5% increase from the year-ago reported figure and growth of 7.2% from the previous quarter’s number.

On the flip side, Danaher is likely to have suffered from the adverse impacts of higher costs and services. In third-quarter 2021, its cost of sales expanded 8%, while selling, general and administrative expenses grew 14.8%, and research and development expenses expanded 28.9%. Supply-chain restrictions, product development, marketing, and sales and service costs are anticipated to have been spoilsports in the quarter.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.50 per share, suggesting growth of 20.1% from the year-ago quarter and a 4.6% increase from the previous quarter.

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 chances of beating estimates. That is not the case with Danaher as shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Danaher has an Earnings ESP of -0.37%.

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 #2.

Stocks to Consider

Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

Graco Inc. (GGG - Free Report) currently has an Earnings ESP of +0.22% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Graco’s earnings is pegged at 64 cents per share for the fourth quarter of 2021. The company delivered better-than-expected results in three of the last four quarters, while lagging estimates once. The average earnings surprise for GGG is 6.58%.

AGCO Corporation (AGCO - Free Report) presently has an Earnings ESP of +25.00% and a Zacks Rank of 2.

For the fourth quarter of 2021, the Zacks Consensus Estimate for AGCO’s earnings is pegged at $1.72 per share. The company delivered better-than-expected results for the fourth quarter of 2021, with an earnings surprise of 47.53%, on average.

3M Company (MMM - Free Report) currently has an Earnings ESP of +0.21% and a Zacks Rank #3.

The Zacks Consensus Estimate for 3M’s earnings is pegged at $2.03 per share for the fourth quarter of 2021. In the last four quarters, the company’s results were better than expected, with an earnings surprise of 14.82%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


In-Depth Zacks Research for the Tickers Above


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


3M Company (MMM) - free report >>

Danaher Corporation (DHR) - free report >>

AGCO Corporation (AGCO) - free report >>

Graco Inc. (GGG) - free report >>

Published in