Conservative · Stocks to Consider and Updates

Danaher Reports Record First Quarter Results

DHR   Global science and technology innovator Danaher Corp. (NYSE: DHR – $84.82) announced results for the first quarter 2015, with adjusted net earnings per share of $0.93, in line with Street views and favorably compared to the $0.81 reported a year ago. Revenues for the quarter grew 4.5% to $4.9 billion, topping the $4.83 billion expected by analysts, with core revenues increasing 5.0%. The company anticipates that adjusted net earnings per share for the second fiscal quarter will be in the range of $1.01 to $1.05, vs. a consensus of $1.08. The company is also updating its full year 2015 adjusted diluted net earnings per share guidance, which is now expected to be in the range of $4.23 to $4.33, slightly below what Wall Street would like, but Danaher tends to be conservative on guidance. The strengthening of the U.S. dollar since the company’s fourth quarter 2014 earnings release in January is expected to reduce 2015 earnings by about $0.07 per share. Danaher has been aggressively increasing its dividend at a 28% annualized clip over the past five years and I see the same for the remainder of the decade as the company throws off a lot of cash flow. The shares are a worthwhile holding for conservative accounts as I see above average total returns in the years ahead.


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