Danaher's shares surged after strong Q2 results, revenue beating estimates, and improved biotechnology orders.

From CNBC: 2024-07-23 13:29:46

Danaher’s shares surged over 6% after strong Q2 results and reaffirmed guidance. Revenue declined 3.5% to $5.74 billion, surpassing analyst estimates. Adjusted EPS was $1.72, ahead of the expected $1.57. Expect improvement in bioprocessing orders with biotech funding rebounding and inventory normalization. Quarterly sales declined organically 2.9% YOY.

In the coming quarter, Danaher expects low single-digit revenue decline. Total sales are forecasted to dip by a percentage in the low single digits for the full year. The company anticipates sales decline in biotechnology and life sciences and modest growth in diagnostics. Management reiterated a full-year adjusted operating margin of 29%.

Strong performance in biotechnology and diagnostics outweighed slight weakness in life sciences. Biotechnology sales fell 7% to $1.71 billion on a core basis, with better bioprocessing order conditions in the U.S. and Europe. Life sciences sales dipped 5.5% to $1.77 billion, while diagnostics sales increased 3% to $2.26 billion. Respiratory revenue topped expectations at $300 million. Free cash flow was $1.13 billion.



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