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Can Danaher (DHR) Keep Earnings Beat Streak Alive in Q3?

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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.

Earnings Whispers

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

 

Danaher Corporation Price, Consensus and EPS Surprise

Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote

Zacks Rank: Danaher currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other companies that you may want to consider as according to our model, these too have the right combination of elements to post an earnings beat this quarter:

Plug Power, Inc (PLUG - Free Report) presently has an Earnings ESP of +58.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sealed Air Corporation (SEE - Free Report) currently has an Earnings ESP of +2.40% and a Zacks Rank #3.

Welbeit, Inc (WBT - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #3 at present.

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