Danaher Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Danaher (NYSE:DHR) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Danaher designs and manufactures professional, medical, industrial, and consumer products.

Danaher Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 87 cents per share, a rise of 7.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 82 cents. Between one and three months ago, the average estimate moved up. It has risen from 83 cents during the last month. For the year, analysts are projecting profit of $3.18 per share, a rise of 12.4% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of 77 cents per share versus a mean estimate of profit of 78 cents per share. In the second quarter, the company beat estimates by one cent.

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A Look Back: In the third quarter, profit rose 4.8% to $548.7 million (77 cents a share) from $523.4 million (74 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 2.3% to $4.42 billion from $4.52 billion.

Here’s how Danaher traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

dhr

Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.9% in revenue from the year-earlier quarter to $4.81 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 25.1% in the fourth quarter of the last fiscal year, 29% in the first quarter and 22.7%in the second quarter before dropping in the third quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 15.1% for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.76 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)