Why Is Life Science-Focused Danaher Trading Higher On Tuesday?
Portfolio Pulse from Vandana Singh
Danaher Corp (NYSE:DHR) reported a 2.5% Y/Y decrease in Q1 sales to $5.79 billion, surpassing the consensus of $5.62 billion. Non-GAAP core revenue fell by 4%, better than the expected high-single-digit decline. Operating cash flow reached $1.7 billion, with non-GAAP free cash flow at $1.4 billion. The company saw improvements in bioprocessing orders and market share gains in its molecular diagnostics business at Cepheid. Despite a drop in biotechnology sales, life sciences and diagnostic sales increased. Operating margin exceeded guidance, and Danaher maintains its fiscal year 2024 guidance, expecting a low-single-digit decline in non-GAAP core revenue. Shares rose 6.5% to $251.46.
April 23, 2024 | 2:13 pm
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Danaher Corp reported better-than-expected Q1 results with a minor sales decline, strong cash flow, and an improved operating margin. The company's shares increased by 6.5%.
Danaher's stock price increase is directly attributed to its Q1 performance exceeding expectations, particularly in revenue, earnings, and cash flow. The positive outlook for FY2024, despite a projected decline in non-GAAP core revenue, suggests continued investor confidence.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100