The 10-second takeaway
For the quarter ended Dec. 31 (Q4), 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 grew.
Margins contracted across the board.
Danaher reported revenue of $4.72 billion. The 18 analysts polled by S&P Capital IQ expected sales of $4.71 billion. Sales were 31% higher than the prior-year quarter's $3.61 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.81. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.78 per share on the same basis. GAAP EPS of $0.81 for Q4 were 15% higher than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 49.3%, 190 basis points worse than the prior-year quarter. Operating margin was 16.1%, 110 basis points worse than the prior-year quarter. Net margin was 12.1%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.35 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $18.64 billion. The average EPS estimate is $3.29.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 506 members out of 527 rating the stock outperform, and 21 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Danaher a green thumbs-up, and five 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 $56.00.
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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.