Danaher's Q3 revenue exceeded estimates, but stock dropped as investors question bioprocessing sustainability

From CNBC: 2024-10-22 15:17:30

Danaher’s Q3 revenue rose 3% to $5.8 billion, exceeding estimates. Shares dropped 4% as investors questioned the sustainability of bioprocessing changes into 2025. Bioprocessing is a vital market for Danaher’s biotechnology sector. Expect recovery in Chinese demand in the long term. Free cash flow improved by nearly 12% to $1.23 billion, with a high conversion to net income. Biotechnology and diagnostics segments registered strong sales performance. China remains a sales challenge. Respiratory sales at Cepheid helped Diagnostics segment top $2.36 billion in sales. Fourth-quarter revenue forecast disappoints investors. Stock decline may present buying opportunity. Long-term growth potential. Management shows the ability to innovate. Customers wait for specifics on Chinese stimulus programs. Company repurchased 2.6 million shares in Q3. Bioprocessing suffered due to lack of funding since 2023. Customers cautious in investments. Bio-process related orders may turn around this year. Wall Street reaction does not reflect Danaher’s improvements. Recommendation: Upgrade to buy with price target of $305.



Read more at CNBC:: Danaher returns bioprocessing to growth. We’re raising our rating back to a buy