Conservative · Portfolio Changes

Danaher Beats Estimates – Raises Guidance; To Spin Off Dental Business

Shares of Washington D.C.-based Danaher Corp. (NYSE: DHR – $103.51) are rising about 5% in today’s trading after the company reported financial results for the second period with earnings and revenue that topped analysts’ expectations. For the quarter ended June 29, the company posted adjusted earnings of $1.15 per share, compared with the prior-year period’s $0.99 and six cents ahead of consensus. The health care and technology provider posted revenue of $4.98 billion, up from $4.51 billion in the same quarter last year and better than the Street view of $4.91 billion.

       Looking ahead, the company expects adjusted earnings per share in the third quarter of $1.05 – $1.08 and raised its full-year guidance to $4.43 – $4.50, from the previous outlook range of $4.38 – $4.45 per share. In a separate release, the company said it intends to spin-off its dental segment into an independent, publicly traded company. The transaction is intended to be tax-free to Danaher shareholders and expected to be completed in the second half of 2019. The general consensus is that a large purchase is on the near-term horizon either before or after the divestiture of the dental division, with speculation that it may buy some or all of General Electric’s health care business. The shares can continue to be maintained in a well-diversified conservative portfolio.

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