Danaher Corporation Prepares for Q1 Earnings Release: Analysts Weigh In
With a market capitalization of $129.9 billion, Danaher Corporation (DHR) is a leading manufacturer of professional, medical, research, and industrial products and services. Based in Washington, D.C., this global conglomerate focuses on sectors such as life sciences, diagnostics, and biotechnology. The company is set to announce its fiscal Q1 earnings for 2025 before the market opens on Tuesday, April 22.
Analyst Expectations for Earnings Report
As the earnings announcement approaches, analysts predict that Danaher will report a profit of $1.62 per share, reflecting a decrease of 15.6% from the $1.92 per share reported in the same quarter last year. Notably, Danaher has exceeded Wall Street’s earnings expectations in three of the last four quarters, missing estimates only once. In Q4 2024, the company posted an EPS of $2.14, which was 1.4% below the forecast.
Long-Term Profit Predictions
For the entire fiscal year 2025, analysts are forecasting an increase in profitability for Danaher, with an expected profit of $7.64 per share, up 2.1% from $7.48 in fiscal 2024. Additionally, EPS is projected to grow by 12.6% year over year, reaching $8.60 in fiscal 2026.
Stock Performance and Historical Context
Shares of Danaher have faced challenges, declining 24.9% over the past year. This underperformance is stark compared to the S&P 500 Index, which has seen a 1.4% dip, and the Health Care Select Sector SPDR Fund’s 4.7% loss during the same period.
Recent Financial Update and Future Guidance
On January 29, shares of DHR dropped 9.7% following a mixed Q4 earnings report. The revenue from its biotechnology and life sciences segments grew robustly, resulting in an overall top line increase of 2.1% year-over-year to $6.5 billion. This amount exceeded consensus estimates by 1.2%. However, despite an annual rise of 2.4% in adjusted earnings to $2.14 per share, the figures fell short of Wall Street’s expectations. Furthermore, the company’s cautious forecast for Q1 2025, indicating a expected low-single-digit percentage decline in core revenue compared to last year’s figures, contributed to investor uncertainty.
Analyst Ratings and Price Target
Despite recent challenges, Wall Street analysts maintain an optimistic outlook for Danaher’s stock, currently holding an overall “Strong Buy” rating. Out of 23 analysts covering the stock, 18 recommend “Strong Buy,” one suggests a “Moderate Buy,” and four advise “Hold.” The average price target for DHR is set at $268, which represents a noteworthy 47.4% potential upside from current market levels.
On the date of publication, Neharika Jain did not hold positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further information, please view the Barchart Disclosure Policy here.
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