Danaher Earnings: Didn’t Pass the Test

S&P 500 (NYSE:SPY) component Danaher Corporation (NYSE:DHR) reported net income above Wall Street’s expectations for the first quarter. Danaher Corporation designs and manufactures professional, medical, industrial and consumer products.

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Danaher Earnings Cheat Sheet for the First Quarter

Results: Net income for Danaher Corporation rose to $429.4 million (63 cents/share) vs. $300.2 million (45 cents/share) YoY. A rise of 43% from the year earlier quarter.

Revenue: Rose 8.2% to $3.35 billion YoY.

Actual vs. Wall St. Expectations: DHR beat the mean analyst estimate of 56 cents/share. Estimates ranged from 53 cents per share to 60 cents per share.

Quoting Management: H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, “We were particularly pleased by our team’s execution which led to strong core revenue and earnings growth during the quarter. Our commitment to the emerging markets combined with a number of major new product launches scheduled for 2011 reinforces our confidence in our ability to outperform in 2011 and over the long term.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.2 percentage points to 52.7% from the year earlier quarter. Over that span, margins have grown on average 2.7 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 77.5% and in the third quarter of the last fiscal year, the figure rose 84%.

Over the last five quarters, revenue has increased 16.2% on average year over year. The biggest increase came in the second quarter of the last fiscal year, when revenue rose 23.8% from the year earlier quarter.

Competitors to Watch: 3M Company (NYSE:MMM), Agilent Technologies Inc. (NYSE:A), Young Innovations, Inc. (NASDAQ:YDNT), DENTSPLY Int. Inc. (NASDAQ:XRAY), Beckman Coulter Inc. (NYSE:BEC), 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).

Today’s Performance: Shares of DHR are trading at $53.18, down 0.7% from the previous closing price of $53.56.

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