The 10-second takeaway
For the quarter ended March 29 (Q1), Danaher met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew slightly. GAAP earnings per share grew.
Gross margins grew, operating margins shrank, net margins grew.
Danaher notched revenue of $4.44 billion. The 18 analysts polled by S&P Capital IQ wanted to see a top line of $4.50 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.75. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.77 per share. Non-GAAP EPS of $0.75 for Q1 were 2.7% higher than the prior-year quarter's $0.73 per share. (The prior-year quarter included $0.13 per share in earnings from discontinued operations.) GAAP EPS of $0.98 for Q1 were 14% higher than the prior-year quarter's $0.86 per share. (The prior-year quarter included $0.13 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 52.3%, 50 basis points better than the prior-year quarter. Operating margin was 16.4%, 30 basis points worse than the prior-year quarter. Net margin was 15.6%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.77 billion. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $19.11 billion. The average EPS estimate is $3.45.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 522 members out of 544 rating the stock outperform, and 22 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 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 $66.95.
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