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Danaher (DHR) Beats on Q3 Earnings & Revenues, Guides Up

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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.  Furthermore, DHR’s previously completed acquisitions have also been driving its top-line growth significantly. Furthermore, positive industry trends like new regulations from the Chinese Food and Drug Administration are expected to act as tailwinds.

Despite these positives, DHR has faced stunted organic revenue growth in its dental segment, mainly attributable to weakness in higher-margin traditional consumables business. Moreover, unfavorable product mix and incremental costs associated with various new product developments, particularly in the dental segment, has been hurting margin performance.

DHR consistently beat earnings in the trailing four quarters, with an average positive surprise of 2.5%.

Currently, DHR has a Zacks Rank #2 (Buy) but that could change following its third quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

Danaher Corporation Price, Consensus and EPS Surprise

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

Earnings: Adjusted earnings per share for the third-quarter 2017 came in at $1.00, which beat the Zacks Consensus Estimate of 95 cents.

Revenue: Revenues of $4,528.2 million topped the Zacks Consensus Estimate of $4,460 million.

Key Stats: Concurrent with the earnings release, DHR raised its full-year 2017 guidance. It now expects adjusted net earnings per share to lie in the range of $3.96 to $4.00, compared to the earlier guided range of $3.90 to $3.97. 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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