We’re cutting our price target on Danaher as frustration mounts after a messy quarter

From CNBC: 2025-01-29 13:02:16

Danaher’s fourth-quarter earnings results were mixed, with revenue up 2% year over year, but adjusted EPS falling short of estimates. The stock tumbled more than 8% in response, dragging it into negative territory for the year. Management’s outlook for the current quarter and full fiscal year also fell short of Wall Street’s expectations.

Despite some bright spots like strong free cash flow and positive momentum in developed markets, Danaher’s core revenue growth is expected to decline in the low single digits for the current quarter. The company’s adjusted operating profit margin is also anticipated to be lower than analyst estimates. Biotechnology core revenue is projected to increase, but life sciences and diagnostics segments are expected to decline.

Danaher’s disappointing performance and guidance have led to a reevaluation of the stock. The company, known for its operational excellence, faced challenges in key markets like China and struggled to meet investor expectations. With a lower price target set and doubts about management credibility, Danaher’s future growth remains uncertain amidst headwinds in the health-care sector.



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