Danaher Q3 Earnings and Revenue Top Estimates

Danaher (DHR) delivered better-than-expected Q3 2021 results for the period ended October 1, 2021. Revenue and earnings came in above consensus estimates as the company continued to expand its production capacity and innovation initiatives. DHR shares fell 1.30% to close at $310.74 on October 21.

Danaher is a U.S. company that designs, manufactures, and sells medical, industrial, and commercial products and services worldwide. It operates under three segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions.

Net earnings in the quarter landed at $1.2 billion while adjusted diluted net earnings per common share increased 39% year-over-year to $2.39. Analysts were expecting EPS of $2.15. Revenue, on the other hand, increased 23% year-over-year to $7.2 billion, exceeding consensus estimates of $7 billion.

Year-to-date operating cash flows stood at $6 billion, representing a 51% year-over-year increase, while non-GAAP free cash flow increased 46.5% from the same quarter last year to $5.2 billion. (See Top Smart Score Stocks on TipRanks)

Danaher is projecting non-GAAP core revenue growth in the low-to-mid teen percentage range in the fourth quarter and a non-GAAP core revenue growth rate of more than 20% for the full year, including Cytiva.

According to CEO Rainer M. Blair, the focus is on investing to fuel growth across the core businesses while also expanding production capacity. In addition, the acquisition of Aldevron should enhance the portfolio and expand its capabilities into the field of genomic medicine.

Yesterday, Goldman Sachs analyst Matthew Skyes reiterated a Buy rating on the stock and raised the price target to $345 from $335, implying 11.03% upside potential to current levels.

Consensus among analysts is a Strong Buy based on 10 Buys and 1 Hold. The average Danaher price target of $336.09 implies an 8.16% upside potential to current levels.