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Danaher (DHR) Beats on Q4 Earnings & Revenue Estimates

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Danaher Corporation (DHR - Free Report) is a global conglomerate that designs, manufactures and markets diverse lines of professional, medical, industrial, commercial and consumer products.

DHR’s tried and tested business model – the Danaher Business System (‘DBS’) – has proved to be the fundamental growth driver, fueling revenue, margins, cash flow and earnings improvement.  Also the company has significantly expanded its foothold in the healthcare and dental markets over the past few quarters and they are proving to be major profit churners. Furthermore, DHR’s previously completed acquisitions significantly drive its top-line growth.

However, softness in industrial markets in China, North America, Latin America and the Middle East has been hampering the company’s business significantly. DHR’s prospects, post Fortive spin-off, and its ability to execute its restructuring plans effectively have also raised a concern. Furthermore, weak academic business in key end markets and currency fluctuations are also adding to the company’s woes.

DHR has a decent earnings surprise history, beating estimates three times over the trailing four quarters. The stock has an average positive surprise of 6.1%.

Currently, DHR has a Zacks Rank #3 (Hold) but that could change following its fourth quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Adjusted earnings per share for the fourth-quarter 2016 came in at $1.05 cents, which beat the Zacks Consensus Estimate of $1.03 cents.

Revenue: Revenues of $4,584.3 million topped the Zacks Consensus Estimate of $4,548 million.

Key Stats: Concurrent with the earnings release, DHR offered its adjusted earnings guidance for full-year 2017. It expects adjusted net earnings per share to lie in the range of $3.85 to $3.95. Overall, the company reported impressive key metrics largely driven by its effective business model, the DBS, which focuses on three critical areas -- quality, delivery, and cost & innovation.

Stock Price: DHR shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this DHR earnings report later!

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