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.
Danaher (DHR) Reliance on International Sales: What Investors Need to Know
Read MoreHide Full Article
Have you evaluated the performance of Danaher's (DHR - Free Report) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this industrial and medical device maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into DHR's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $5.8 billion, showing decrease of 15.6%. We will now explore the breakdown of DHR's overseas revenue to assess the impact of its international operations.
Decoding DHR's International Revenue Trends
Other developed markets generated $299 million in revenues for the company in the last quarter, constituting 5.2% of the total. This represented a surprise of +6.69% compared to the $280.26 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other developed markets accounted for $292 million (5.1%), and in the year-ago quarter, it contributed $330 million (4.8%) to the total revenue.
During the quarter, High-growth markets contributed $1.72 billion in revenue, making up 29.7% of the total revenue. When compared to the consensus estimate of $1.81 billion, this meant a surprise of -4.61%. Looking back, High-growth markets contributed $1.7 billion, or 29.5%, in the previous quarter, and $2.1 billion, or 30.6%, in the same quarter of the previous year.
Western Europe accounted for 22.8% of the company's total revenue during the quarter, translating to $1.32 billion. Revenues from this region represented a surprise of +11.32%, with Wall Street analysts collectively expecting $1.19 billion. When compared to the preceding quarter and the same quarter in the previous year, Western Europe contributed $1.32 billion (23%) and $1.47 billion (21.3%) to the total revenue, respectively.
Prospective Revenues in International Markets
Wall Street analysts expect Danaher to report $6.43 billion in total revenue for the current fiscal quarter, indicating an increase of 0.5% from the year-ago quarter. Other developed markets, High-growth markets and Western Europe are expected to contribute 5.3% ($339.57 million), 34.1% ($2.19 billion) and 22.1% ($1.42 billion) to the total revenue, respectively.
For the entire year, the company's total revenue is forecasted to be $23.74 billion, which is a reduction of 14% from the previous year. The revenue contributions from different regions are expected as follows: Other developed markets will contribute 5.1% ($1.21 billion), High-growth markets 30.5% ($7.23 billion) and Western Europe 22.1% ($5.25 billion) to the total revenue.
In Conclusion
Relying on international markets for revenues, Danaher faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
A Look at Danaher's Recent Stock Price Performance
The stock has witnessed a decline of 10.9% over the past month versus the Zacks S&P 500 composite's an increase of 2%. In the same interval, the Zacks Conglomerates sector, to which Danaher belongs, has registered a decrease of 5.7%. Over the past three months, the company's shares saw a decrease of 11.3%, while the S&P 500 increased by 7.9%. In comparison, the sector experienced a decline of 6.1% during this timeframe.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Danaher (DHR) Reliance on International Sales: What Investors Need to Know
Have you evaluated the performance of Danaher's (DHR - Free Report) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this industrial and medical device maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into DHR's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $5.8 billion, showing decrease of 15.6%. We will now explore the breakdown of DHR's overseas revenue to assess the impact of its international operations.
Decoding DHR's International Revenue Trends
Other developed markets generated $299 million in revenues for the company in the last quarter, constituting 5.2% of the total. This represented a surprise of +6.69% compared to the $280.26 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other developed markets accounted for $292 million (5.1%), and in the year-ago quarter, it contributed $330 million (4.8%) to the total revenue.
During the quarter, High-growth markets contributed $1.72 billion in revenue, making up 29.7% of the total revenue. When compared to the consensus estimate of $1.81 billion, this meant a surprise of -4.61%. Looking back, High-growth markets contributed $1.7 billion, or 29.5%, in the previous quarter, and $2.1 billion, or 30.6%, in the same quarter of the previous year.
Western Europe accounted for 22.8% of the company's total revenue during the quarter, translating to $1.32 billion. Revenues from this region represented a surprise of +11.32%, with Wall Street analysts collectively expecting $1.19 billion. When compared to the preceding quarter and the same quarter in the previous year, Western Europe contributed $1.32 billion (23%) and $1.47 billion (21.3%) to the total revenue, respectively.
Prospective Revenues in International Markets
Wall Street analysts expect Danaher to report $6.43 billion in total revenue for the current fiscal quarter, indicating an increase of 0.5% from the year-ago quarter. Other developed markets, High-growth markets and Western Europe are expected to contribute 5.3% ($339.57 million), 34.1% ($2.19 billion) and 22.1% ($1.42 billion) to the total revenue, respectively.For the entire year, the company's total revenue is forecasted to be $23.74 billion, which is a reduction of 14% from the previous year. The revenue contributions from different regions are expected as follows: Other developed markets will contribute 5.1% ($1.21 billion), High-growth markets 30.5% ($7.23 billion) and Western Europe 22.1% ($5.25 billion) to the total revenue.
In Conclusion
Relying on international markets for revenues, Danaher faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
At present, Danaher holds a Zacks Rank #4 (Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Look at Danaher's Recent Stock Price Performance
The stock has witnessed a decline of 10.9% over the past month versus the Zacks S&P 500 composite's an increase of 2%. In the same interval, the Zacks Conglomerates sector, to which Danaher belongs, has registered a decrease of 5.7%. Over the past three months, the company's shares saw a decrease of 11.3%, while the S&P 500 increased by 7.9%. In comparison, the sector experienced a decline of 6.1% during this timeframe.