Danaher Earnings: Here’s Why Investors are Selling Shares Now

Danaher Corp. (NYSE:DHR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.68%.

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Danaher Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2.74% to $0.75 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Rose 2.98% to $4.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Danaher Corp. reported adjusted EPS income of $0.75 per share. By that measure, the company missed the mean analyst estimate of $0.76. It missed the average revenue estimate of $4.5 billion.

Quoting Management: H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, “Our modest expectations for global growth heading into this year have, so far, played out largely as anticipated. The Danaher Business System continues to help us drive share gains, margins and cash flow in this low growth environment. We believe our solid recurring revenue base, the structural cost actions executed in 2012 and an attractive acquisition environment position Danaher well for the balance of 2013 and beyond.”

Key Stats (on next page)…

Revenue decreased 10.66% from $4.98 billion in the previous quarter. EPS decreased 13.79% from $0.87 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.90 to a profit $0.87. For the current year, the average estimate has moved down from a profit of $3.52 to a profit of $3.45 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)