What You Need to Know Ahead of Danaher's Earnings…

What You Need to Know Ahead of Danaher's Earnings Release

Washington, the District of Columbia-based Danaher Corporation (DHR) is a global conglomerate in designing and manufacturing professional and industrial products. With a market cap of $202.9 billion, the company operates primarily in the life sciences, diagnostics, and environmental sectors, providing innovative solutions to enhance research, diagnostics, and safety standards. The company is slated to announce its fiscal Q3 earnings results before the market opens on Tuesday, Oct. 22.

Ahead of this event, analysts expect the industrial and medical device maker to report a profit of $1.56 per share, a 22.8% decline from $2.02 per share in the year-ago quarter. The company has consistently exceeded Wall Street's earnings expectations in the past four quarters. In the most recent quarter, the company exceeded the consensus EPS estimate by a 9.6% margin.

For fiscal 2024, analysts expect DHR to report EPS of $7.59, marking a marginal growth from $7.58 in fiscal 2023. In addition, in fiscal 2025, EPS is expected to grow 14.4% year-over-year to $8.68.

In 2024, shares of Danaher increased 16.8%, lagging behind the broader S&P 500 Index's ($SPX) 19.4% gain. However, the stock has outperformed the Health Care Select Sector SPDR Fund's (XLV) 11.2% return on a YTD basis.

Danaher's stock surged 5.3% on Jul. 23 following its stronger-than-expected Q2 adjusted earnings of $1.72 per share and revenue of $5.7 billion. The company reported a core revenue decline of only 3.5%, better than the anticipated mid-single-digit decline, alongside an adjusted operating profit margin of 27.3%. Additionally, positive momentum in its bioprocessing business and market share gains in its Cepheid molecular diagnostic testing division, reinforce investor confidence in Danaher’s ability to return to high growth rates by 2025 and 2026.

Analysts' consensus view on DHR stock remains cautiously optimistic, with a "Moderate Buy" overall rating. Out of 21 analysts covering the stock, 13 recommend a "Strong Buy," two "Moderate Buys," and six give a "Hold" rating. This configuration is more bullish than three months ago, with 12 analysts suggesting a "Strong Buy."

The average analyst price target for DHR is $290.21, suggesting a potential upside of only 6.7% from the current levels.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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