The 10-second takeaway
For the quarter ended March 30 (Q1), Danaher met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased significantly.
Gross margin and operating margin contracted, while net margin increased.
Danaher reported revenue of $4.32 billion. The 15 analysts polled by S&P Capital IQ expected sales of $4.33 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $3.29 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.73. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.71 per share on the same basis. GAAP EPS of $0.86 for Q1 were 37% higher than the prior-year quarter's $0.63 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 51.8%, 130 basis points worse than the prior-year quarter. Operating margin was 16.7%, 60 basis points worse than the prior-year quarter. Net margin was 14.2%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.63 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $18.57 billion. The average EPS estimate is $3.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 507 members rating the stock outperform and 24 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 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 $58.95.
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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.