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Danaher Corporation (DHR - Free Report) has reported impressive first-quarter 2022 results. The company’s earnings surpassed the Zacks Consensus Estimate by 4.2%. Its sales beat in the quarter was 1.9%.
In the reported quarter, the company’s adjusted earnings were $2.76 per share, surpassing the Zacks Consensus Estimate of $2.65. The bottom line increased 9.5% from the year-ago quarter’s figure of $2.52, primarily on sales growth.
Revenue Details
In the quarter under review, the company’s net sales were $7,688 million, reflecting year-over-year growth of 12%. Results were driven by solid segmental performances. Organic sales in the quarter increased 12% and acquisitions/divestments boosted sales by 2%. Foreign-currency translations had an adverse impact of 2% on the quarterly sales.
The pandemic-induced demand for products boosted sales by 4% and base business core sales (excludes the impacts of COVID-19 testing revenues) growth was 8% in the quarter. The company’s top line surpassed the Zacks Consensus Estimate of $7,546 million.
It reports net sales under three segments, namely Life Sciences, Diagnostics and Environmental & Applied Solutions. The segmental information is briefly discussed below:
Revenues from the Life Sciences segment totaled $3,882 million, rising 9.5% year over year. Acquisitions/divestments contributed 4% to sales growth, while foreign-currency translations lowered sales by 2%. Core sales grew 7.5% year over year.
Revenues from the Diagnostics segment grossed $2,644 million, increasing 21.5% year over year. The improvement came on the back of a 22.5% rise in core sales and a 1% gain from acquisitions. Foreign currency translation had an adverse impact of 2%.
Revenues from the Environmental & Applied Solutions segment totaled $1,162 million, up 2.5% year over year. Core sales expanded 6.5% and foreign currency translation had a negative impact of 1.5%. Acquisitions/divestitures lowered sales by 2.5%.
Danaher Corporation Price, Consensus and EPS Surprise
In the first quarter, Danaher’s cost of sales increased 14.5% year over year to $2,983 million. The gross profit of $4,705 million grew 10.6% year over year, while the margin decreased 80 basis points (bps) to 61.2%.
Selling, general and administrative expenses of $2,092 million witnessed a year-over-year increase of 11.5%. Research and development expenses were $441 million, up 16.1%.
Operating income in the quarter under review increased 8.7% year over year to $2,172 million. The operating margin decreased 80 bps to 28.3% in the quarter. Interest expenses totaled $54 million, down 6.9% from the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the first quarter, Danaher had cash and cash equivalents of $3,717 million, up 43.7% from $2,586 million at the end of the last reported quarter. The long-term debt balance decreased 1.8% sequentially to $21,768 million.
In the first three months of 2022, the company made no repayments of borrowings with a maturity of more than 90 days. Net proceeds from borrowings (with a maturity of less than 90 days) totaled $10 million in the period.
Danaher generated net cash of $1,968 million from operating activities (continuing operations) in the first three months of 2022, reflecting a year-over-year increase of 5.2%. Capital used for purchasing property, plant and equipment totaled $250 million, relatively stable year over year. Free cash flow (continuing operations) was $1,720 million, indicating growth of 5.4%.
The company paid out dividends worth $191 million to its shareholders in the first three months of 2022, up 13% on a year-over-year basis.
Outlook
Danaher expects year-over-year core revenue growth in the range of low-single digit for the second quarter of 2022 and mid-single digits for 2022.
The COVID-related impacts are anticipated to boost sales in low-single digits in both the second quarter and 2022.
Base business core sales growth is predicted to be in mid-single digit for the second quarter and in high-single digit for 2022.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked companies are discussed below.
In the past 60 days, Griffon’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022). The stock has lost 19.6% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2. CSL’s earnings surprise in the last four quarters was 35.1%, on average.
In the past 60 days, Carlisle’s earnings estimates have increased 0.5% for 2022. CSL’s shares have gained 13.1% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 10.5% in the past three months.
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Danaher's (DHR) Q1 Earnings & Revenues Beat, Increase Y/Y
Danaher Corporation (DHR - Free Report) has reported impressive first-quarter 2022 results. The company’s earnings surpassed the Zacks Consensus Estimate by 4.2%. Its sales beat in the quarter was 1.9%.
In the reported quarter, the company’s adjusted earnings were $2.76 per share, surpassing the Zacks Consensus Estimate of $2.65. The bottom line increased 9.5% from the year-ago quarter’s figure of $2.52, primarily on sales growth.
Revenue Details
In the quarter under review, the company’s net sales were $7,688 million, reflecting year-over-year growth of 12%. Results were driven by solid segmental performances. Organic sales in the quarter increased 12% and acquisitions/divestments boosted sales by 2%. Foreign-currency translations had an adverse impact of 2% on the quarterly sales.
The pandemic-induced demand for products boosted sales by 4% and base business core sales (excludes the impacts of COVID-19 testing revenues) growth was 8% in the quarter. The company’s top line surpassed the Zacks Consensus Estimate of $7,546 million.
It reports net sales under three segments, namely Life Sciences, Diagnostics and Environmental & Applied Solutions. The segmental information is briefly discussed below:
Revenues from the Life Sciences segment totaled $3,882 million, rising 9.5% year over year. Acquisitions/divestments contributed 4% to sales growth, while foreign-currency translations lowered sales by 2%. Core sales grew 7.5% year over year.
Revenues from the Diagnostics segment grossed $2,644 million, increasing 21.5% year over year. The improvement came on the back of a 22.5% rise in core sales and a 1% gain from acquisitions. Foreign currency translation had an adverse impact of 2%.
Revenues from the Environmental & Applied Solutions segment totaled $1,162 million, up 2.5% year over year. Core sales expanded 6.5% and foreign currency translation had a negative impact of 1.5%. Acquisitions/divestitures lowered sales by 2.5%.
Danaher Corporation Price, Consensus and EPS Surprise
Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote
Margin Profile
In the first quarter, Danaher’s cost of sales increased 14.5% year over year to $2,983 million. The gross profit of $4,705 million grew 10.6% year over year, while the margin decreased 80 basis points (bps) to 61.2%.
Selling, general and administrative expenses of $2,092 million witnessed a year-over-year increase of 11.5%. Research and development expenses were $441 million, up 16.1%.
Operating income in the quarter under review increased 8.7% year over year to $2,172 million. The operating margin decreased 80 bps to 28.3% in the quarter. Interest expenses totaled $54 million, down 6.9% from the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the first quarter, Danaher had cash and cash equivalents of $3,717 million, up 43.7% from $2,586 million at the end of the last reported quarter. The long-term debt balance decreased 1.8% sequentially to $21,768 million.
In the first three months of 2022, the company made no repayments of borrowings with a maturity of more than 90 days. Net proceeds from borrowings (with a maturity of less than 90 days) totaled $10 million in the period.
Danaher generated net cash of $1,968 million from operating activities (continuing operations) in the first three months of 2022, reflecting a year-over-year increase of 5.2%. Capital used for purchasing property, plant and equipment totaled $250 million, relatively stable year over year. Free cash flow (continuing operations) was $1,720 million, indicating growth of 5.4%.
The company paid out dividends worth $191 million to its shareholders in the first three months of 2022, up 13% on a year-over-year basis.
Outlook
Danaher expects year-over-year core revenue growth in the range of low-single digit for the second quarter of 2022 and mid-single digits for 2022.
The COVID-related impacts are anticipated to boost sales in low-single digits in both the second quarter and 2022.
Base business core sales growth is predicted to be in mid-single digit for the second quarter and in high-single digit for 2022.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked companies are discussed below.
Griffon Corporation (GFF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 56.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, Griffon’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022). The stock has lost 19.6% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2. CSL’s earnings surprise in the last four quarters was 35.1%, on average.
In the past 60 days, Carlisle’s earnings estimates have increased 0.5% for 2022. CSL’s shares have gained 13.1% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 10.5% in the past three months.