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Danaher (DHR) Raises Earnings & Sales Projections for Q4

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Danaher Corporation (DHR - Free Report) communicated yesterday that its fourth-quarter 2019 results will likely be better than previously expected. The announcement was made by Thomas P. Joyce, Jr., the company’s president and chief executive officer, at a healthcare conference.

The news seems to have lifted market sentiments, contributing to yesterday’s share price increase of 1.14%. The trading session ended, with the share price at $161.39.

Inside the Headlines

As noted, healthy performances of the Life Sciences and Diagnostics segments will likely drive fourth-quarter 2019 organic sales growth above the previous expectation of 4.5%. Also, the company expects the quarter’s adjusted earnings per share to either meet or exceed the higher end of $1.32-$1.35 mentioned earlier.

Notably, the Life Sciences and Diagnostics segments generated roughly 65% of Danaher’s total revenues of $5,037.3 million in the third quarter of 2019.

The Zacks Consensus Estimate for fourth-quarter revenues and earnings are pegged at $5.28 billion and $1.25 per share, suggesting declines of 1.6% and 2.3% from the year-ago reported figures, respectively. Also, in the past 60 days, earnings estimates of $1.25 have been revised down by 6%.

Notably, Danaher will release fourth-quarter 2019 results before the market opens on Jan 30, 2020.

Zacks Rank, Earnings Estimate Trend and Price Performance

With a market capitalization of $114.6 billion, the company currently carries a Zacks Rank #3 (Hold). Over the past 60 days, the Zacks Consensus Estimate for earnings has decreased 3.8% to $4.57 for 2019 and 3% to $5.41 for 2020.

Danaher Corporation Price and Consensus

 

Danaher Corporation Price and Consensus

Danaher Corporation price-consensus-chart | Danaher Corporation Quote

In the past three months, Danaher’s share price has increased 17.4% compared with the industry’s 15.3% growth.





Stocks to Consider

Some better-ranked stocks are DXP Enterprises, Inc (DXPE - Free Report) , Cintas Corporation (CTAS - Free Report) and Chart Industries, Inc (GTLS - Free Report) . While DXP Enterprises currently sports a Zacks Rank #1 (Strong Buy), Cintas and Chart Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, earnings estimates for these stocks have improved for the current year. Further, positive earnings surprise for the last four quarters, on average, was 17.67% for DXP Enterprises, 8.50% for Cintas and 4.01% for Chart Industries.

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