Danaher Corp. Earnings Cheat Sheet: Snaps Strong Streak with Profit Drop

Rising revenue was not enough for S&P 500 (NYSE:SPY) component Danaher Corporation (NYSE:DHR) as the conglomerates company saw profit fall in the third quarter. Danaher designs and manufactures professional, medical, industrial, and consumer products.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Danaher Earnings Cheat Sheet for the Third Quarter

Results: Net income for the conglomerates company fell to $523.4 million (74 cents per share) vs. $646.4 million (95 cents per share) a year earlier. This is a decline of 19% from the year earlier quarter.

Revenue: Rose 41.6% to $4.52 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DHR reported adjusted net income of 73 cents per share. By that measure, the company beat the mean estimate of 70 cents per share. Analysts were expecting revenue of $4.47 billion.

Quoting Management: H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, “We saw continued momentum across our businesses and were particularly pleased with our execution which led to outstanding year-over-year core revenue growth, core operating margin expansion, cash flow and earnings performance. As we are mindful that the environment is likely to be more challenging going forward, we anticipate increasing our previously announced fourth quarter restructuring efforts from approximately $50 million to approximately $100 million.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 74.2% from the year earlier, while the figure increased 43% in the first quarter, 77.5% in the fourth quarter of the last fiscal year and 84% in the third quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 4 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 12.1% to $3.71 billion in the second quarter. The figure rose 8.2% in the first quarter from the year earlier and climbed 15.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 80 cents per share, down from 82 cents ninety days ago. For the fiscal year, the average estimate has moved up from $2.81 a share to $2.82 over the last ninety days.

Competitors to Watch: 3M Company (NYSE:MMM), Beckman Coulter, Inc. (NYSE:BEC), Agilent Technologies Inc. (NYSE:A), Young Innovations, Inc. (NASDAQ:YDNT), DENTSPLY Intl. Inc. (NASDAQ:XRAY), General Electric Company (NYSE:GE), ESCO Technologies Inc. (NYSE:ESE), Align Technology, Inc. (NASDAQ:ALGN), AMETEK, Inc. (NYSE:AME), and Thermo Fisher Scientific Inc. (NYSE:TMO).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

More from The Cheat Sheet