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Danaher Gives Update on Q1 Results, Withdraws 2020 Guidance

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Danaher Corporation (DHR - Free Report) yesterday provided an update on results for the first quarter of 2020 (ended April 03, 2020). Also, the company has withdrawn its earlier announced guidance for 2020.

Notably, its share price increased 0.27% yesterday, ending the trading session at $146.13.

Inside the Headlines

For the first quarter of 2020, Danaher anticipates revenues to increase 3%, while expects core revenues (on a non-GAAP basis) to be up 4.5%.

As noted, the company expects positive results from all of its three business segments in the first quarter, backed by strong momentum across its Radiometer, Cepheid, Pall and ChemTreat businesses. Although it witnessed a decent start in the year, the coronavirus outbreak slowed demands in its more instrument-oriented businesses at the end of the first quarter.

Danaher expects to release the first-quarter results on May 7. Notably, the Zacks Consensus Estimate for the company’s first-quarter adjusted earnings is pegged at 98 cents.

However, on uncertainties regarding the impacts of the outbreak on financial and operating results, the company has now withdrawn its guidance for 2020. Notably, the duration of the coronavirus pandemic, its geographic spread and the impacts of the governmental regulations imposed in response to the crisis will likely have a bearing on Danaher’s results.

On the fourth-quarter 2019 conference call held in January, Danaher had anticipated adjusted earnings of $4.80-$4.90 per share for 2020, indicating growth from $4.42 recorded in 2019.

Also, for the year, the company had expected core sales growth of 5%. Notably, the earlier-announced projections excluded the impact of the recently closed acquisition of General Electric Company’s (GE - Free Report) BioPharma business.

Zacks Rank, Price Performance and Estimate Trend

The company, with a $101.8-billion market capitalization, currently carries a Zacks Rank #4 (Sell).

Over the past three months, its share price has decreased 9.2% compared with the industry’s decline of 22.6%.

 


 

In the past 30 days, the Zacks Consensus Estimate for its earnings has been lowered by 8.9% to $4.94 for 2020 and by 5.9% to $5.85 for 2021.

Stocks to Consider

A couple of better-ranked stocks are Tennant Company (TNC - Free Report) and Griffon Corporation (GFF - Free Report) . While Tennant currently sports a Zacks Rank #1 (Strong Buy), Griffon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Tennant delivered a positive earnings surprise of 26.60%, on average, in the trailing four quarters.

Griffon delivered a positive earnings surprise of 20.34%, on average, in the trailing four quarters.

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