Danaher Beats Estimates; Raises Full-Year Guidance

  Science and medical technology company Danaher Corp. (NYSE: DHR – $83.20) said it earned an adjusted $0.99 a share, two cents ahead of analysts’ estimates on revenue that rose 6.3% year over year. Danaher beat revenue slightly on a dollar basis at $4.51 billion, but core growth appeared to be slightly below consensus and the company’s previous guidance. Net earnings per share beat largely on selling and administrative cost controls. For the third quarter, Danaher expects to earn between $0.92 and $0.96 a share, on the low-end of consensus of $0.96. For the full year, however, the company raised its forecast, saying it will earn between $3.90 and $3.97 a share, up from the previous range of $3.85 to $3.95 and compared to last year’s $3.34. There were no major surprises in the Life Sciences and Diagnostics segments, although the company said it is discontinuing the Veris line acquired in the Beckman Coulter deal to focus on its recent acquisition of molecular diagnostic provider Cepheid. Although the shares dipped following the results and the past 52-weeks have been rather uninspiring, I still like this equity as a three to five-year play for capital appreciation potential.

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