Danaher Case Summary
Danaher (DHR) Beats Analysts’ Estimates; Looks Even Stronger after the Spin-off
Danaher Corp (NYSE:DHR) has beaten analysts’ expectations for both revenue and earnings in the second quarter by $30 million and $0.03 per share, respectively. Danaher Corporation is a manufacturer of medical, industrial & commercial products.
The company has posted high double digit growth in both earnings and sales in the second quarter on the back of its expansion strategy.
In the second quarter, the company generated a sales growth of 16.5% to $5.8B, compared with the same quarter of last year. Bolt-on and pall acquisitions are the key drivers behind the high double digit growth in sales. Sales from its Life Sciences increased at a mid-single digit, while
its Diagnostics segment saw a strong growth from the Chinese and Indian markets.
Danaher’s earnings per share also increased in the second quarter by 17% to $1.25 per share, compared to the prior year’s quarter. For the full year, Danaher is expecting its earnings per share to stand at around $3.60, almost a 20% improvement compared to the year 2015.
Overall, the company’s strategy to expand its presence in both emerging and developed markets is working. In addition, innovations, organic growth investments, acquisitions and portfolio management initiatives are the key drivers for strong revenue and earnings growth.
In order to capitalize on the growing demand, Danaher has spun-off its Professional Instrumentation and Industrial Technologies businesses into a separate company. Danaher share holders have received one share of the new company (Fortive Corporation) for every two shares of Danaher.
With this spin-off, Danaher is likely to largely expand its Life Sciences, Dental, Diagnostics and Environmental Solutions businesses.
The company’s cash generation potential is also very strong to support its aggressive expansion strategy. In the latest quarter, its free cash flows stood at around $1.1B and its free cash flow conversion ratio was above 150% to net income. On the whole, Danaher is set to generate high revenue and earnings in the coming quarter amid its strategies and strong cash generation potential.
Danaher Corp (NYSE:DHR) has beaten analysts’ expectations for both revenue and earnings in the second quarter by $30 million and $0.03 per share, respectively. Danaher Corporation is a manufacturer of medical, industrial & commercial products.
The company has posted high double digit growth in both earnings and sales in the second quarter on the back of its expansion strategy.
In the second quarter, the company generated a sales growth of 16.5% to $5.8B, compared with the same quarter of last year. Bolt-on and pall acquisitions are the key drivers behind the high double digit growth in sales. Sales from its Life Sciences increased at a mid-single digit, while
its Diagnostics segment saw a strong growth from the Chinese and Indian markets.
Danaher’s earnings per share also increased in the second quarter by 17% to $1.25 per share, compared to the prior year’s quarter. For the full year, Danaher is expecting its earnings per share to stand at around $3.60, almost a 20% improvement compared to the year 2015.
Overall, the company’s strategy to expand its presence in both emerging and developed markets is working. In addition, innovations, organic growth investments, acquisitions and portfolio management initiatives are the key drivers for strong revenue and earnings growth.
In order to capitalize on the growing demand, Danaher has spun-off its Professional Instrumentation and Industrial Technologies businesses into a separate company. Danaher share holders have received one share of the new company (Fortive Corporation) for every two shares of Danaher.
With this spin-off, Danaher is likely to largely expand its Life Sciences, Dental, Diagnostics and Environmental Solutions businesses.
The company’s cash generation potential is also very strong to support its aggressive expansion strategy. In the latest quarter, its free cash flows stood at around $1.1B and its free cash flow conversion ratio was above 150% to net income. On the whole, Danaher is set to generate high revenue and earnings in the coming quarter amid its strategies and strong cash generation potential.