The 10-second takeaway
For the quarter ended Sep. 28 (Q3), Danaher missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share increased.
Margins increased across the board.
Danaher logged revenue of $4.42 billion. The 16 analysts polled by S&P Capital IQ foresaw revenue of $4.51 billion on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $4.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.79 per share. GAAP EPS of $0.77 for Q3 were 4.1% higher than the prior-year quarter's $0.74 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.6%, 280 basis points better than the prior-year quarter. Operating margin was 16.7%, 250 basis points better than the prior-year quarter. Net margin was 12.4%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.83 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $18.16 billion. The average EPS estimate is $3.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 520 members out of 544 rating the stock outperform, and 24 members rating it underperform. Among 146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give Danaher a green thumbs-up, and two 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 $60.11.
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