We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Danaher Q1 Earnings Beat Estimates, Life Sciences Sales Down Y/Y
Read MoreHide Full Article
Danaher Corporation’s (DHR - Free Report) first-quarter 2025 adjusted earnings of $1.88 per share beat the Zacks Consensus Estimate of $1.62. However, the bottom line decreased 2.1% year over year.
Danaher reported net sales of $5.74 billion, which beat the consensus estimate of $5.56 billion. However, the metric decreased 1% year over year, owing to the lackluster performance of the Diagnostics and Life Sciences segments.
DHR’s core sales were flat in the quarter. Acquisitions had a positive impact of 0.5% on quarterly sales while foreign-currency translations had an adverse impact of 1.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
DHR’s Segmental Discussion
Revenues from the Life Sciences segment totaled $1.68 billion, down 3.5% year over year. We expected the segment’s revenues to be $1.62 billion. Core sales decreased 4% year over year. Acquisitions had a positive impact of 2% on segmental sales while foreign-currency translations had a negative impact of 1.5%. Operating profit was $201 million, down 14.5% year over year.
Revenues from the Diagnostics segment totaled $2.44 billion, down 3.1% year over year. Our estimate for revenues was $2.35 billion. Core sales decreased 1.5% year over year, while foreign currency had an adverse impact of 1% on sales. Acquisitions/divestitures impacted sales by 0.5%. Operating profit was $718 million, down 13.5% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $1.61 billion, up 6% year over year. Our estimate was $1.59 billion. Core sales increased 7% year over year while foreign-currency translations had an adverse impact of 1%. Operating profit was $441 million, up 35.7% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
In the first quarter, Danaher’s cost of sales decreased 3.4% year over year to $2.2 billion. Gross profit of $3.51 billion increased 0.7% year over year. The gross margin was 61.2% compared with 60.2% in the year-ago quarter.
Selling, general and administrative expenses of $1.86 billion recorded an increase of 2.8% on a year-over-year basis. Research and development expenses were $379 million, up 3% year over year.
Danaher’s operating profit decreased 2.9% year over year to $1.27 billion. Operating margin contracted to 22.2% from 22.6% in the year-ago quarter.
DHR’s Balance Sheet and Cash Flow
Exiting the first quarter, DHR had cash and equivalents of $2 billion compared with $2.1 billion at 2024-end. Long-term debt was $16 billion at the end of the quarter compared with $15.5 billion at the end of December 2024.
Danaher generated net cash of $1.3 billion from operating activities in the first three months of 2025 compared with $1.7 billion in the previous year’s comparable period. Capital expenditures totaled $245 million in the same period, down 15.8% year over year. Adjusted free cash flow decreased 27% year over year to $1.06 billion in the first three months of 2025.
In the same period, DHR paid out dividends of $194 million, up 9.6% on a year-over-year basis.
Danaher’s Outlook
For the second quarter, Danaher expects adjusted core sales from continuing operations to increase in the low single digits on a year-over-year basis.
The metric is anticipated to increase approximately 3% on a year-over-year basis in 2025. The company expects adjusted earnings to be $7.60-$7.75 per share.
AZZ Inc. (AZZ - Free Report) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.
AZZ reported revenues of $351.88 million, missing the Zacks Consensus Estimate by 3.77%. This compares with year-ago revenues of $366.5 million.
Valmont Industries (VMI - Free Report) reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. EPS of $4.32 for the same period compares with $4.32 a year ago.
The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an EPS surprise of 1.89%, with the consensus estimate being $4.24.
Pentair plc (PNR - Free Report) came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.
Pentair posted revenues of $1.01 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Danaher Q1 Earnings Beat Estimates, Life Sciences Sales Down Y/Y
Danaher Corporation’s (DHR - Free Report) first-quarter 2025 adjusted earnings of $1.88 per share beat the Zacks Consensus Estimate of $1.62. However, the bottom line decreased 2.1% year over year.
Danaher reported net sales of $5.74 billion, which beat the consensus estimate of $5.56 billion. However, the metric decreased 1% year over year, owing to the lackluster performance of the Diagnostics and Life Sciences segments.
DHR’s core sales were flat in the quarter. Acquisitions had a positive impact of 0.5% on quarterly sales while foreign-currency translations had an adverse impact of 1.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
DHR’s Segmental Discussion
Revenues from the Life Sciences segment totaled $1.68 billion, down 3.5% year over year. We expected the segment’s revenues to be $1.62 billion. Core sales decreased 4% year over year. Acquisitions had a positive impact of 2% on segmental sales while foreign-currency translations had a negative impact of 1.5%. Operating profit was $201 million, down 14.5% year over year.
Revenues from the Diagnostics segment totaled $2.44 billion, down 3.1% year over year. Our estimate for revenues was $2.35 billion. Core sales decreased 1.5% year over year, while foreign currency had an adverse impact of 1% on sales. Acquisitions/divestitures impacted sales by 0.5%. Operating profit was $718 million, down 13.5% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $1.61 billion, up 6% year over year. Our estimate was $1.59 billion. Core sales increased 7% year over year while foreign-currency translations had an adverse impact of 1%. Operating profit was $441 million, up 35.7% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote
Danaher’s Margin Profile
In the first quarter, Danaher’s cost of sales decreased 3.4% year over year to $2.2 billion. Gross profit of $3.51 billion increased 0.7% year over year. The gross margin was 61.2% compared with 60.2% in the year-ago quarter.
Selling, general and administrative expenses of $1.86 billion recorded an increase of 2.8% on a year-over-year basis. Research and development expenses were $379 million, up 3% year over year.
Danaher’s operating profit decreased 2.9% year over year to $1.27 billion. Operating margin contracted to 22.2% from 22.6% in the year-ago quarter.
DHR’s Balance Sheet and Cash Flow
Exiting the first quarter, DHR had cash and equivalents of $2 billion compared with $2.1 billion at 2024-end. Long-term debt was $16 billion at the end of the quarter compared with $15.5 billion at the end of December 2024.
Danaher generated net cash of $1.3 billion from operating activities in the first three months of 2025 compared with $1.7 billion in the previous year’s comparable period. Capital expenditures totaled $245 million in the same period, down 15.8% year over year. Adjusted free cash flow decreased 27% year over year to $1.06 billion in the first three months of 2025.
In the same period, DHR paid out dividends of $194 million, up 9.6% on a year-over-year basis.
Danaher’s Outlook
For the second quarter, Danaher expects adjusted core sales from continuing operations to increase in the low single digits on a year-over-year basis.
The metric is anticipated to increase approximately 3% on a year-over-year basis in 2025. The company expects adjusted earnings to be $7.60-$7.75 per share.
DHR’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
AZZ Inc. (AZZ - Free Report) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.
AZZ reported revenues of $351.88 million, missing the Zacks Consensus Estimate by 3.77%. This compares with year-ago revenues of $366.5 million.
Valmont Industries (VMI - Free Report) reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. EPS of $4.32 for the same period compares with $4.32 a year ago.
The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an EPS surprise of 1.89%, with the consensus estimate being $4.24.
Pentair plc (PNR - Free Report) came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.
Pentair posted revenues of $1.01 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.