Conservative · Stocks to Consider and Updates

Danaher Reports 3rd Quarter Results; Tempers Outlook

Danaher Corp. (NYSE: DHR – $136.62) said its profit rose for the third quarter as revenue increased about 4% from a year earlier. The Washington, DC-based science and technology company reported adjusted earnings of $1.16 a share vs. $1.10 last year and a penny above analysts’ consensus estimates. Revenue rose to $5.04 billion from $4.85 billion a year earlier and, again, a bit above Street views of $5.02 billion. For the full year 2019, the company now anticipates that adjusted diluted net earnings per share to be $4.74 to $4.77, on the low end of consensus. Earnings per share figures include the dilution from the 19.4% non-controlling interest of its dental businesses now called Envista, which Danaher spun-off as a separate company last month. The company also said it achieved several important milestones related to the GE Biopharma acquisition. Earlier this week it announced the planned sale of certain businesses to Sartorius in connection with the regulatory approval process for GE Biopharma. In addition, the company raised approximately $6.8 billion in euro-denominated debt in September to be used to fund the acquisition.

       The shares are up 42% over the past 52-weeks and are not cheap by historical valuations. But Danaher has proven nimble with acquisitions and streamlining its portfolio of businesses. The shares can remain a consideration for conservative accounts.

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