Danaher gains as biotech and diagnostics drive Q2 beat

Danaher Corporation (NYSE:DHR) traded higher premarket Tuesday after the Washington, DC-based healthcare giant exceeded Street forecasts with its Q2 2024 results, thanks mainly to its Biotech and Diagnostics businesses.

However, total revenue at the life sciences toolmaker fell ~3% YoY to $5.7B, which still stood better than ~$5.6B projected by analysts, according to Bloomberg data.

Total sales from the Life Sciences and Biotech divisions fell ~9% YoY and ~2% YoY, respectively, leading to the contraction, while sales in the Diagnostics segment improved by ~2% YoY.

During the quarter, the Biotech and Diagnostics businesses added ~$1.7B and ~$2.3B to the topline, exceeding the ~$1.6B and ~$2.2B projected by analysts, respectively, while the Life Sciences segment brought ~$1.8B in line with consensus.

“Our team executed well during the second quarter, delivering better-than-expected revenue, earnings, and cash flow,” remarked CEO Rainer Blair ahead of the earnings call at 8:00 a.m. ET.

Despite exceeding estimates, DHR’s adjusted earnings per share slipped ~1% YoY to $1.72 in Q2, while its adjusted operating profit margin remained steady at ~27%.

However, the company reaffirmed that its non-GAAP core revenue will drop by low single digits this year.