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Danaher (DHR) to Report Q1 Earnings: Is a Beat in the Cards?

Danaher Corporation DHR is set to release first-quarter 2021 results on Apr 22, before market open.

The company delivered better-than-expected results in each of the last four quarters, the earnings surprise being 19.86%, on average. In the last reported quarter, the company’s earnings of $2.08 per share surpassed the Zacks Consensus Estimate of $1.84 by 13.04%.  

In the past three months, Danaher’s shares have gained 3.8% compared with the industry’s growth of 12.3%.

Factors at Play

Danaher is expected to have benefited from growth in demand for its products, along with its focus on product innovation and operational execution, in the first quarter of 2021. For the first quarter, the company increased its core sales growth projection (including Cytiva) to 29% from the growth of mid-to high-teens range guided previously.

Notably, the company expects total revenues for the first quarter to increase 57% on a year-over-year basis. It is likely to have benefited from strong momentum across its businesses, with particular strength in the Diagnostics and Life Sciences segments.

Coming to operating segments, healthy demand for bioprocessing products is likely to have augmented the top-line performance of its Life Sciences segment. The Zacks Consensus Estimate for the Life Sciences segment’s revenues is pegged at $2,943 million, suggesting a 78.4% year-over-year increase but 12.4% sequential decline.

For the Diagnostics segment, solid demand for molecular testing products is anticipated to have supported its performance. The Zacks Consensus Estimate for the Diagnostics segment’s revenues for the first quarter is pegged at $2,000 million, suggesting growth of 22.9% from the year-ago reported figure but a decrease of 10.2% on a sequential basis.

For the Environmental & Applied Solutions segment, the company anticipates healthy consumables business and a solid demand for equipment to have boosted the segment’s performance. The consensus estimate for the segment’s revenues is pegged at $1,109 million, indicating growth of 4% from the year-ago reported number but a sequential fall of 5.4%.

The Zack Consensus Estimate for first-quarter total revenues of $6,076 million suggests a 39.9% increase from the year-ago reported figure but 10.1% decline from the previous quarter’s reported number.

However, the coronavirus outbreak-related issues along with an unwarranted rise in costs and expenses and high debts, if any, might have affected Danaher‘s performance in the quarter. In addition, given its diverse geographic presence, its operations are subject to issues like unfavorable movement in foreign currencies and interest rate fluctuations in some foreign countries. This might have hurt its business in the to-be-reported quarter as well.

Earnings Whispers

Our proven model predicts an earnings beat for Danaher this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

This is the case here as given below:

Earnings ESP: The company has an Earnings ESP of +4.11% as the Most Accurate Estimate is pegged at $1.74, higher than the Zacks Consensus Estimate of $1.67.

Danaher Corporation Price and EPS Surprise

Danaher Corporation price-eps-surprise | Danaher Corporation Quote

Zacks Rank: Danaher carries a Zacks Rank #3.

Other Key Picks

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

General Electric Company GE has an Earnings ESP of +33.33% and it currently carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Honeywell International Inc. HON has an Earnings ESP of +2.31% and a Zacks Rank #3.

ITT Inc. ITT has an Earnings ESP of +2.39% and Zacks Rank #3.

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