The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Danaher beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins dropped, operating margins contracted, net margins expanded.
Danaher logged revenue of $4.98 billion. The 17 analysts polled by S&P Capital IQ expected sales of $4.82 billion on the same basis. GAAP reported sales were 10% higher 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 $0.89. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.87 per share. GAAP EPS of $0.89 for Q4 were 11% higher than the prior-year quarter's $0.80 per share. (The prior-year quarter included $0.04 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.2%, 310 basis points worse than the prior-year quarter. Operating margin was 17.0%, 560 basis points worse than the prior-year quarter. Net margin was 12.7%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.47 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $18.89 billion. The average EPS estimate is $3.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 518 members out of 541 rating the stock outperform, and 23 members rating it underperform. Among 172 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 give Danaher a green thumbs-up, and three 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 $60.78.
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