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Danaher (DHR) to Spin-Off Environmental Unit, Shares Pop
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Danaher Corporation (DHR - Free Report) has announced that it will separate its Environmental & Applied Solutions ("EAS") segment into an independent public company. The spin-off will help the company focus on its Life Sciences (major revenue generator) and Diagnostics segments. Following this news, shares of the company popped 4.4% in after-hours trading on Sep 14.
The new EAS company will comprise the operations of Danaher’s Water Quality and Product Identification businesses. It will include the existing Environmental & Applied Solutions segment’s companies such as Hach, ChemTreat, Trojan, OTT and McCrometer in Water Quality and Videojet, X-Rite Pantone, Esko and Linx in Product Identification. The unit generated revenues of approximately $4.7 billion (around 16% of the top line) in 2021.
Rainer M. Blair, president and chief executive officer of Danaher, said, "We believe that EAS will be advantaged as a standalone company with greater opportunities to pursue high-impact organic and inorganic investments." The tax-free spin-off is expected to be completed in the fourth quarter of 2023.
Jennifer L. Honeycutt will head EAS as its president and chief executive officer. Currently serving as the executive vice president of Danaher, Honeycutt also oversees the Environmental & Applied Solutions segment.
On a separate note, Danaher said that it will provide an update on its third-quarter 2022 performance at an investor and analyst event today. Blair is expected to communicate that the company anticipates core revenue growth above the prior guidance of low-single digits for the third quarter.
The improvement is due to expectations of higher Cepheid respiratory testing revenues of more than $500 million in the third quarter compared with the prior view of approximately $325 million. DHR continues to expect base business core revenue growth of high-single digits for the third quarter.
Zacks Rank & Key Picks
Danaher presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the Conglomerates sector are as follows:
Carlisle Companies (CSL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for CSL’s 2022 earnings has been revised upward by 14.6% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks.
Carlisle has an estimated earnings growth rate of 114.4% for the current year. Shares of CSL have rallied 30% in the past three months.
Icahn Enterprises (IEP - Free Report) presently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for IEP’s 2022 earnings has been revised upward by more than 100% in the past 60 days.
Icahn Enterprises has an estimated earnings growth rate of 144.4% for the current year. Shares of IEP have gained 6% in the past three months.
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Danaher (DHR) to Spin-Off Environmental Unit, Shares Pop
Danaher Corporation (DHR - Free Report) has announced that it will separate its Environmental & Applied Solutions ("EAS") segment into an independent public company. The spin-off will help the company focus on its Life Sciences (major revenue generator) and Diagnostics segments. Following this news, shares of the company popped 4.4% in after-hours trading on Sep 14.
The new EAS company will comprise the operations of Danaher’s Water Quality and Product Identification businesses. It will include the existing Environmental & Applied Solutions segment’s companies such as Hach, ChemTreat, Trojan, OTT and McCrometer in Water Quality and Videojet, X-Rite Pantone, Esko and Linx in Product Identification. The unit generated revenues of approximately $4.7 billion (around 16% of the top line) in 2021.
Rainer M. Blair, president and chief executive officer of Danaher, said, "We believe that EAS will be advantaged as a standalone company with greater opportunities to pursue high-impact organic and inorganic investments." The tax-free spin-off is expected to be completed in the fourth quarter of 2023.
Danaher Corporation Price
Danaher Corporation price | Danaher Corporation Quote
Jennifer L. Honeycutt will head EAS as its president and chief executive officer. Currently serving as the executive vice president of Danaher, Honeycutt also oversees the Environmental & Applied Solutions segment.
On a separate note, Danaher said that it will provide an update on its third-quarter 2022 performance at an investor and analyst event today. Blair is expected to communicate that the company anticipates core revenue growth above the prior guidance of low-single digits for the third quarter.
The improvement is due to expectations of higher Cepheid respiratory testing revenues of more than $500 million in the third quarter compared with the prior view of approximately $325 million. DHR continues to expect base business core revenue growth of high-single digits for the third quarter.
Zacks Rank & Key Picks
Danaher presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the Conglomerates sector are as follows:
Carlisle Companies (CSL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for CSL’s 2022 earnings has been revised upward by 14.6% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks.
Carlisle has an estimated earnings growth rate of 114.4% for the current year. Shares of CSL have rallied 30% in the past three months.
Icahn Enterprises (IEP - Free Report) presently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for IEP’s 2022 earnings has been revised upward by more than 100% in the past 60 days.
Icahn Enterprises has an estimated earnings growth rate of 144.4% for the current year. Shares of IEP have gained 6% in the past three months.