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Danaher (DHR) Beats on Q4 Earnings & Revenues, Guides Well

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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. Moreover, DHR’s previously completed acquisitions have also been driving its top-line growth significantly. These strategic buyouts along with positive industry trends are expected to act as tailwinds.

However, DHR has faced stunted organic revenue growth in its dental segment, mainly attributable to weakness in higher-margin traditional consumables business. Moreover, softness in industrial markets in China, North America, Latin America and the Middle East has been severely impacting the company’s business.

DHR has consistently beaten earnings in the trailing four quarters, with an average positive surprise of 2.6%.

Currently, DHR has a Zacks Rank #3 (Buy) but that could change following its fourth-quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1(Strong Buy) 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 2017 came in at $1.19, which beat the Zacks Consensus Estimate of $1.16.

Revenue: Revenues of $5,085.7 million topped the Zacks Consensus Estimate of $4,972 million.

Key Stats: Concurrent with the earnings release, provided its guidance for full-year 2018. The company projects adjusted earnings per share in the range of $4.25–$4.35. 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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