Danaher Corporation DHR is a global conglomerate that designs, manufactures and markets diverse lines of professional, medical, industrial, commercial and consumer products.
DHR’s tried and tested business model – the Danaher Business System (‘DBS’) – has proved to be the fundamental growth driver, fueling revenue, margins, cash flow and earnings improvement. Also the company has significantly expanded its foothold in the healthcare and dental markets over the past few quarters and they are proving to be major profit churners. Furthermore, DHR’s previously completed acquisitions have also been significantly drive its top-line growth.
Despite these positives, softness in industrial markets including China, North America, Latin America and the Middle East are likely to restrict the company’s growth to some extent.
DHR consistently beat earnings in the trailing four quarters, with an average positive surprise of 6.6%.
Currently, DHR has a Zacks Rank #2 (Buy) but that could change following its first quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.
We have highlighted some of the key details from the just-released announcement below:
Earnings: Adjusted earnings per share for the first-quarter 2017 came in at 85 cents, which beat the Zacks Consensus Estimate of 84 cents.
Revenue: Revenues of $4,205.7 million topped the Zacks Consensus Estimate of $4,170 million.
Key Stats: Concurrent with the earnings release, DHR reiterated its full-year 2017 guidance. It expects adjusted net earnings per share to lie in the range of $3.85 to $3.95. Overall, the company reported impressive key metrics largely driven by its effective business model, the DBS, which focuses on three critical areas — quality, delivery, and cost & innovation. Also, Pall and Cepheid buyouts strongly supplemented the sales performance.
Stock Price: DHR shares were up in pre-market trading following the announcement of an earnings beat. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this DHR earnings report later!
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