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Danaher (DHR) to Post Q1 Earnings: What's in the Cards?
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Danaher Corporation (DHR - Free Report) is scheduled to release first-quarter 2022 results on Apr 21, before market open.
The conglomerate delivered better-than-expected results in the last four quarters, the earnings surprise being 22.7%, on average. In the last reported quarter, the company’s earnings of $2.69 surpassed the Zacks Consensus Estimate of $2.50 by 7.6%.
Image Source: Zacks Investment Research
In the past three months, shares of Danaher have lost 2.8% compared with the industry’s decline of 7.2%.
Let us delve deeper.
Key Factors & Estimates for Q1
Danaher is expected to have benefited from strength across its Diagnostics and Life Sciences businesses in the first quarter of 2022. The diagnostics business is anticipated to have performed well, driven by solid demand for molecular testing and higher non-COVID testing products. Healthy demand for bioprocessing products is predicted to have boosted the Life Sciences business in the quarter.
Strength in the consumables business and solid demand for equipment is anticipated to have driven the top-line performance of the Environmental & Applied Solutions segment. DHR’s initiatives to boost product innovation and build an efficient workforce, and superior product quality are likely to have been beneficial in the quarter.
Danaher anticipates year-over-year core revenue growth of 10% for the first quarter of 2022. Base business core revenues (excluding the impacts of COVID-19 testing) are expected to increase in high single digit year over year.
For the Diagnostics segment, the consensus estimate is pegged at $2,543 million for the first quarter, suggesting growth of 16.8% from the year-ago reported figure but a decline of 11.7% from the previous quarter. The same for the Life Sciences segment, pegged at $3,864 million, suggests a 9% increase and 4.5% decline from the year-ago and previous quarters’ reported numbers, respectively.
The Zacks Consensus Estimate for Environmental & Applied Solutions’ revenues is pegged at $1,154 million, suggesting a 1.8% increase from the year-ago reported figure but a decline of 5.5% from the previous quarter’s number.
Over time, the escalating cost of sales and expenses have been a concern for Danaher. Its cost of sales expanded 14.2%, while selling, general and administrative expenses increased 17.2%. Research and development expenses expanded 25% in fourth-quarter 2021. Also, it has been witnessing supply-chain challenges and inflationary pressure. High costs and expenses might have adversely impacted its margin and profitability in the to-be-reported quarter.
The Zacks Consensus Estimate for Danaher’s first-quarter revenues of $7,546 million suggests a 10% increase from the year-ago reported figure and a 7.4% decline from the previous quarter’s number. The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.63 per share, suggesting growth of 4.4% from the year-ago quarter and a 2.2% decline from the previous quarter.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
Earnings ESP: Danaher has an Earnings ESP of 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings in this reporting cycle.
Its earnings surprise in the last four quarters was 35.1%, on average In the past 60 days, Carlisle’s earnings estimates have increased 3.6% for 2022. CSL’s shares have gained 6.2% in the past three months.
3M Company (MMM - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank of 3, currently. MMM delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Earnings estimates of MMM have decreased 1.8% for 2022 in the past 60 days. Its shares have declined 15.8% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +6.14% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.26% for 2022. The stock grew 19.4% in the past three months.
Image: Bigstock
Danaher (DHR) to Post Q1 Earnings: What's in the Cards?
Danaher Corporation (DHR - Free Report) is scheduled to release first-quarter 2022 results on Apr 21, before market open.
The conglomerate delivered better-than-expected results in the last four quarters, the earnings surprise being 22.7%, on average. In the last reported quarter, the company’s earnings of $2.69 surpassed the Zacks Consensus Estimate of $2.50 by 7.6%.
Image Source: Zacks Investment Research
In the past three months, shares of Danaher have lost 2.8% compared with the industry’s decline of 7.2%.
Let us delve deeper.
Key Factors & Estimates for Q1
Danaher is expected to have benefited from strength across its Diagnostics and Life Sciences businesses in the first quarter of 2022. The diagnostics business is anticipated to have performed well, driven by solid demand for molecular testing and higher non-COVID testing products. Healthy demand for bioprocessing products is predicted to have boosted the Life Sciences business in the quarter.
Strength in the consumables business and solid demand for equipment is anticipated to have driven the top-line performance of the Environmental & Applied Solutions segment. DHR’s initiatives to boost product innovation and build an efficient workforce, and superior product quality are likely to have been beneficial in the quarter.
Danaher anticipates year-over-year core revenue growth of 10% for the first quarter of 2022. Base business core revenues (excluding the impacts of COVID-19 testing) are expected to increase in high single digit year over year.
For the Diagnostics segment, the consensus estimate is pegged at $2,543 million for the first quarter, suggesting growth of 16.8% from the year-ago reported figure but a decline of 11.7% from the previous quarter. The same for the Life Sciences segment, pegged at $3,864 million, suggests a 9% increase and 4.5% decline from the year-ago and previous quarters’ reported numbers, respectively.
The Zacks Consensus Estimate for Environmental & Applied Solutions’ revenues is pegged at $1,154 million, suggesting a 1.8% increase from the year-ago reported figure but a decline of 5.5% from the previous quarter’s number.
Over time, the escalating cost of sales and expenses have been a concern for Danaher. Its cost of sales expanded 14.2%, while selling, general and administrative expenses increased 17.2%. Research and development expenses expanded 25% in fourth-quarter 2021. Also, it has been witnessing supply-chain challenges and inflationary pressure. High costs and expenses might have adversely impacted its margin and profitability in the to-be-reported quarter.
The Zacks Consensus Estimate for Danaher’s first-quarter revenues of $7,546 million suggests a 10% increase from the year-ago reported figure and a 7.4% decline from the previous quarter’s number. The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.63 per share, suggesting growth of 4.4% from the year-ago quarter and a 2.2% decline from the previous quarter.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
Earnings ESP: Danaher has an Earnings ESP of 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.63. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Danaher Corporation Price and EPS Surprise
Danaher Corporation price-eps-surprise | Danaher Corporation Quote
Zacks Rank: The company carries a Zacks Rank #3.
Stocks to Consider
Here are some companies that you may want to consider as, according to our model, these have the right combination of elements to beat on earnings in this reporting cycle.
Carlisle Companies Incorporated (CSL - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its earnings surprise in the last four quarters was 35.1%, on average In the past 60 days, Carlisle’s earnings estimates have increased 3.6% for 2022. CSL’s shares have gained 6.2% in the past three months.
3M Company (MMM - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank of 3, currently. MMM delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Earnings estimates of MMM have decreased 1.8% for 2022 in the past 60 days. Its shares have declined 15.8% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +6.14% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.26% for 2022. The stock grew 19.4% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.