Danaher Corporation (NYSE:DHR) logged Q4 FY21 adjusted EPS of $2.69 up 29% Y/Y, surpassing the estimate of $2.51.
- Sales increased 20.5% to $8.1 billion, with 19.5% non-GAAP core revenue growth, beating the $7.92 billion estimate.
- Operating cash flow for FY21 reached $8.4 billion, representing a Y/Y increase of 34.5%. Non-GAAP free cash flow increased 30.5% at $7.1 billion.
- The gross margin expanded to 60.7% from 58.5% a year ago, and the operating margin also improved from 23.7% to $26.4%.
- Rainer Blair, President & CEO, stated, "2021 was a tremendous year for Danaher. Our team successfully executed through a challenging environment to deliver outstanding financial results — including 25% core revenue growth, nearly 60% adjusted earnings per share growth, and over $7 billion of free cash flow."
- Blair also added, "we were particularly pleased with the performance in our base business, which grew low-double digits, and believe we gained market share across our portfolio. We also continued to build for the future, deploying $11 billion on strategic acquisitions while accelerating innovation and capacity investments."
- Outlook: For both Q1 FY22 and FY22, Danaher anticipates that non-GAAP core revenue growth in the base business will be in the high-single-digit percent range.
- Analyst Reaction: Barclays has lowered the price target from $355 to $325 with the Overweight rating unchanged.
- Price Action: DHR shares closed at $266.82 on Wednesday.
