Danaher Beats Analyst Estimates on EPS

Danaher (NYSE: DHR  ) reported earnings on July 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q2), Danaher met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank.

Gross margins dropped, operating margins expanded, net margins contracted.

Revenue details
Danaher booked revenue of $4.55 billion. The 16 analysts polled by S&P Capital IQ looked for revenue of $4.58 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $3.71 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.84. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS of $0.84 for Q2 were 11% lower than the prior-year quarter's $0.94 per share. (The prior-year quarter included $0.29 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.7%, 70 basis points worse than the prior-year quarter. Operating margin was 17.4%, 90 basis points better than the prior-year quarter. Net margin was 13.2%, 430 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.51 billion. On the bottom line, the average EPS estimate is $0.81.

Next year's average estimate for revenue is $18.22 billion. The average EPS estimate is $3.25.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 518 members out of 541 rating the stock outperform, and 24 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give Danaher a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Danaher is outperform, with an average price target of $60.45.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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9/2/2014 3:14 PM
DHR $76.46 Down -0.15 -0.20%
Danaher Corp CAPS Rating: *****

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