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.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.5%. In the last reported quarter, its earnings of $2.02 per share beat the Zacks Consensus Estimate of $1.83 by 10.4%.
Image Source: Zacks Investment Research
In the past three months, DHR’s shares have gained 21% compared with the industry’s growth of 13.6%.
Let’s see how things have shaped up for Danaher this earnings season.
Key Factors and Estimates for Q4
Improving supply chains and strong price realization are expected to drive Danaher’s fourth-quarter results. The company’s Life Sciences segment is anticipated to reflect benefits from stable demand in the life science research and applied markets. However, softness in the pharma and biopharma markets might have hurt the segment’s top line. For the fourth quarter, we expect Life Sciences’ revenues to be $1,839.9 million, indicating a decline of 5.5% year over year.
Lower sales of COVID-related products are expected to have hurt the Diagnostics segment’s performance in the fourth quarter. However, strength at Beckman Diagnostics business and respiratory testing at Cepheid might have been a relief. Also, weakness in the bioprocessing business due to lower demand from earlier-stage research and lab filtration customers is expected to have been a spoilsport for the Biotechnology segment.
Our estimates for the company’s fourth-quarter revenues for the Diagnostics and Biotechnology segments are pegged at $2,372 million and $1,677.3 million, respectively, suggesting significant year-over-year declines.
Danaher expects total core revenues to decline in the high-teens percentage range for the fourth quarter due to lower demand for COVID-19 testing, vaccines and therapeutics. For 2023, the company expects total core revenues to decline in the low double digits.
Nevertheless, management has been trying to improve performance through operational initiatives. The company has been able to reduce the impact of supply chain constraints through its Danaher Business System (“DBS”) initiatives. As part of the DBS initiatives, disciplined cost management, enhanced productivity and pricing actions are anticipated to have supported the company’s margin performance. For the fourth quarter, we expect a gross margin of 59.9%, reflecting a year-over-year increase of 90 basis points.
Our proven model suggests 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, which is the case here, as elaborated below.
Earnings ESP: Danaher has an Earnings ESP of +3.46% as the Most Accurate Estimate is pegged at $1.96, which is higher than the Zacks Consensus Estimate of $1.89. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: DHR carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other companies that, according to our model, have the right combination to beat on earnings this reporting cycle:
GFF’s earnings for the to-be-reported quarter are expected to decrease 9.3%. However, the consensus mark for its quarterly earnings has moved up 2.6% to 78 cents per share in the past 60 days.
The Zacks Consensus Estimate for GFF’s quarterly revenues is pegged at $597.3 million, which suggests a decline of 8% from the figure reported in the prior-year quarter.
Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.20% and currently carries a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports fourth-quarter 2023 numbers. The consensus mark for ETN’s quarterly earnings has moved up 0.4% to $2.47 per share in the past 60 days. The consensus estimate suggests 19.9% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Eaton’s quarterly revenues is pegged at $5,890 million, suggesting growth of 9.5% from the figure reported in the prior-year quarter.
Alarm.com Holdings (ALRM - Free Report) has an Earnings ESP of +8.79% and carries a Zacks Rank #3. ALRM’s earnings for the to-be-reported quarter are expected to decrease 9.4% on a year-over-year basis. The consensus mark for its quarterly earnings has moved up 4.3% to 48 cents per share in the past 60 days.
The Zacks Consensus Estimate for Alarm.com’s quarterly revenues is pegged at $225.2 million, which suggests growth of 8.2% from the figure reported in the prior-year quarter.
Image: Shutterstock
Danaher (DHR) Gears Up to Post Q4 Earnings: Is a Beat in Store?
Danaher Corporation (DHR - Free Report) is scheduled to release fourth-quarter 2023 results on Jan 30, before market open.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.5%. In the last reported quarter, its earnings of $2.02 per share beat the Zacks Consensus Estimate of $1.83 by 10.4%.
Image Source: Zacks Investment Research
In the past three months, DHR’s shares have gained 21% compared with the industry’s growth of 13.6%.
Let’s see how things have shaped up for Danaher this earnings season.
Key Factors and Estimates for Q4
Improving supply chains and strong price realization are expected to drive Danaher’s fourth-quarter results. The company’s Life Sciences segment is anticipated to reflect benefits from stable demand in the life science research and applied markets. However, softness in the pharma and biopharma markets might have hurt the segment’s top line. For the fourth quarter, we expect Life Sciences’ revenues to be $1,839.9 million, indicating a decline of 5.5% year over year.
Lower sales of COVID-related products are expected to have hurt the Diagnostics segment’s performance in the fourth quarter. However, strength at Beckman Diagnostics business and respiratory testing at Cepheid might have been a relief. Also, weakness in the bioprocessing business due to lower demand from earlier-stage research and lab filtration customers is expected to have been a spoilsport for the Biotechnology segment.
Our estimates for the company’s fourth-quarter revenues for the Diagnostics and Biotechnology segments are pegged at $2,372 million and $1,677.3 million, respectively, suggesting significant year-over-year declines.
Danaher expects total core revenues to decline in the high-teens percentage range for the fourth quarter due to lower demand for COVID-19 testing, vaccines and therapeutics. For 2023, the company expects total core revenues to decline in the low double digits.
Nevertheless, management has been trying to improve performance through operational initiatives. The company has been able to reduce the impact of supply chain constraints through its Danaher Business System (“DBS”) initiatives. As part of the DBS initiatives, disciplined cost management, enhanced productivity and pricing actions are anticipated to have supported the company’s margin performance. For the fourth quarter, we expect a gross margin of 59.9%, reflecting a year-over-year increase of 90 basis points.
Danaher Corporation Price and EPS Surprise
Danaher Corporation price-eps-surprise | Danaher Corporation Quote
Earnings Whispers
Our proven model suggests 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, which is the case here, as elaborated below.
Earnings ESP: Danaher has an Earnings ESP of +3.46% as the Most Accurate Estimate is pegged at $1.96, which is higher than the Zacks Consensus Estimate of $1.89. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: DHR carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other companies that, according to our model, have the right combination to beat on earnings this reporting cycle:
Griffon Corporation (GFF - Free Report) has an Earnings ESP of +2.08% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GFF’s earnings for the to-be-reported quarter are expected to decrease 9.3%. However, the consensus mark for its quarterly earnings has moved up 2.6% to 78 cents per share in the past 60 days.
The Zacks Consensus Estimate for GFF’s quarterly revenues is pegged at $597.3 million, which suggests a decline of 8% from the figure reported in the prior-year quarter.
Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.20% and currently carries a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports fourth-quarter 2023 numbers. The consensus mark for ETN’s quarterly earnings has moved up 0.4% to $2.47 per share in the past 60 days. The consensus estimate suggests 19.9% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Eaton’s quarterly revenues is pegged at $5,890 million, suggesting growth of 9.5% from the figure reported in the prior-year quarter.
Alarm.com Holdings (ALRM - Free Report) has an Earnings ESP of +8.79% and carries a Zacks Rank #3. ALRM’s earnings for the to-be-reported quarter are expected to decrease 9.4% on a year-over-year basis. The consensus mark for its quarterly earnings has moved up 4.3% to 48 cents per share in the past 60 days.
The Zacks Consensus Estimate for Alarm.com’s quarterly revenues is pegged at $225.2 million, which suggests growth of 8.2% from the figure reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.