Danaher gains as Q1 results exceed expectations
Contributor since / Followers
Zerbor/iStock via Getty Images
Danaher (NYSE:DHR) shares added ~9% premarket Tuesday after the company topped Street forecasts with its Q1 2024 financials despite ongoing contraction at its biotech business.
The U.S.-based life sciences toolmaker reported $5.8B in revenue for the quarter with a ~3% YoY decline as its Biotechnology division witnessed a ~18% YoY drop in sales following a ~21% YoY decline in the preceding quarter.
Meanwhile, its Life Sciences and Diagnostics divisions recorded ~2% YoY and ~7% YoY growth, respectively, compared to ~1% YoY and ~9% YoY declines in Q4 2023, when the company’s overall revenue fell ~10% YoY.
“We had a good start to 2024, with our team delivering better-than-expected revenue, earnings, and cash flow,” CEO Rainer Blair remarked.
While DHR’s operating profit stood at $1.3B, well short of $1.6B in Bloomberg consensus, its net cash from operating activities reached ~$1.7B compared to $1.6B estimated by analysts.
DHR expects its non-GAAP core revenue for Q2 2024 and the full year will drop by mid-single digits and low-single digits from a year ago, respectively.
In the wake of Danaher’s (DHR) better-than-expected results, its rival life sciences toolmakers will be in focus. Stocks to watch include Repligen (RGEN), Bio-Rad (BIO), Thermo Fisher Scientific (TMO), Agilent (A), Avantor (AVTR), and Waters Corporation (WAT).