Danaher Corporation (DHR - Free Report) is set to release third-quarter 2019 results on Oct 24, before the market opens.
The conglomerate delivered impressive results in the last four quarters, surpassing estimates in all occasions. Its average earnings surprise is a positive 3.25%. In the last reported quarter, its earnings of $1.19 surpassed the Zacks Consensus Estimate of $1.15.
In the past three months, the company’s shares have decreased 3% compared with the industry’s decline of 5.7%.
Let us see how things are shaping up for Danaher this quarter.
Factors to Influence Q3 Results
The company’s effective implementation of Danaher Business System (“DBS”) — including the focus on building an efficient workforce, enhancing product quality, product innovation and shareholder-friendly policies — had positively impacted results in the first two quarters of 2019. The same is expected to have aided Danaher’s performance in the third quarter.
In addition, strong demand for products — including ChemTreat, DxH 900 analyzer, iCELLis bioreactor system and Esko — is anticipated to have driven third-quarter top-line performance. Further, proceeds from the divestment of dental assets have helped in lowering debts in the quarter. This is expected to get reflected in third-quarter profitability. Also, acquired assets are anticipated to have positively impacted third-quarter performance.
Notwithstanding the tailwinds, unfavorable movements in foreign currencies as well as risks and costs related to acquisitions are expected to get reflected in third-quarter 2019 margins.
Danaher anticipates adjusted earnings of $1.12-$1.15 per share for third-quarter 2019, suggesting growth from $1.10 recorded in the year-ago quarter. Core sales are predicted to grow roughly 4.5% in the quarter.
The Zack Consensus Estimate for the company’s earnings per share of $1.15 is likely to rise 4.5% from the year-ago reported figure. However, the estimate for revenues of $5,040 million suggests 3.9% growth from the year-ago quarter’s reported number.
Commercial initiatives, solid product offerings, emphasis on innovation and gains from acquired assets (especially Integrated DNA Technologies acquired in 2018) are anticipated to have driven third-quarter for the Life Sciences segment, as it did in the second quarter of 2019. The Zacks Consensus Estimate for the segment’s third-quarter sales is pegged at $1,658 million, indicating 3.8% rise from the year-ago reported figure.
Presence in high growth markets, improved orders for Esko and X-Rite products, and strengthening end markets are expected to have boosted third-quarter revenues for the Environmental & Applied Solutions segment. The Zacks Consensus Estimate for the segment’s revenues for the third quarter is pegged at $1,110 million, suggesting growth of 3.4% from the year-ago reported figure.
Rising international presence and growing popularity of products, including DxH 900 analyzers, are anticipated to have driven top-line results for Diagnostics. The Zacks Consensus Estimate for the segment’s revenues for the third quarter is pegged at $1,574 million, indicating growth of 4.7% from the year-ago reported figure.
Our proven model predicts an earnings beat for Unifirst 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an earnings ESP of +0.10%.
Danaher Corporation Price, Consensus and EPS Surprise