Danaher Shares are under pressure wedding as the club holding’s fourth -Quarter earnings results camee in mixed and guidance disappointed. The company long knowledge for its operational excellence is further testing our patience. Revenue for the three months ended dec. 31 Advanced 2% Year Over Year on a Reported Basis, to $ 6.54 Billion, Outpacing the LSEG Consensus Estimate of $ 6.43 billion. On an organic Basis, sales was up 1% versus the year -go period. Adjusted Earnings Per Share (EPS) Increased 2.4% Annually, to $ 2.14, but it came up short versus the $ 2.16 consensus estimate, LSEG Data Showed. It’s the first time danher has missed the Quarterly EPS Consensus Since at Least the fourth Quarter of 2019, according to factsset. Shares tumbled more than 8%, to rooughly $ 226 apiece, in early afternoon trading wedding. The losses have dragged the stock into negative territory year to date. Danaher entered the session up roughly 8% so far in 2025, part of a strong start to the year for the health-care sector more broadly. DHR 1y Mountain Danher’s Stock Performance Over the Past 12 months. Bottom line another disappointing release from danher – extending a streak of inconsistent results over the past two years – Leaves us with no choice but to reconsider this position. On tuesday, we did trim 50 shares and downgraded the name to a hold-equivalent 2 rating out of discipline. It came as the stock got a boost on the back of results from european peer sartorius. Of course, in Hindsight, We should have sold more. That’s not easy to admit trust of how highly we’ve thought about this company and its management in the past. And it’s not just us: Danaher’s long-standing corporate strategy to fuel growth and make sharehlders money —The Aptly named Danher Business System-Has Been the Subact of Harvard business Danaher Provides Products and Services to Multiple Corners of the Health-Care Industry, Including Theose used in Drug Discovery and Production, Production, As well as Diagnostic tools tools tools tools. Its customers also include Academic Research Labs and Pharmaceutical and Biotech Companies. We did not Arrive at our disatimacation in Haste. DURING The January Monthly Meeting, We Highlighted Our Disappointment in the Lack of Growth Out of China. While the sluggish chinese economy cannot be blamed on management, the failure to manage investor expectations can. Compounding our existing frustration, management sounded so upbeat wedding despite what we see in the actual results and formal guidance. The team’s credibility is back in doubt. For now, We’re Lowering Our Price Target on the Stock to $ 270 a Share from $ 305, Reflecting the Lower-Tha-Expected Growth Now Forecast for 2025. S outlook for the current Quarter and full Fiscal year. Management Had Previewed These Decided Fourth -Quarter Results Earlier this month, at the influential jpmorgan healthcare conference, which added to the anticipation of Wednesday’s guide. What we got wasn’t good enough, with expected core revneue growth for both periods bell street’s consensus. Danaher Why We We own it Tibodies, Among other themes. In recent years, danaher has reshaped its portfolio toward faster-growing, higher-margin options within health care. But it has been a bumpy ride, with danher struggling to return to sustainable growth due to customers work off exss covid-ke inventory. Our Investment Acknowledges Continued Near-Term Headwinds With Longer Term Potanial. Competitors: Sartorius and Thermo Fisher Scientific Weight in Portfolio: 3.27% Most Recent Buy: Nov. 18, 2024 Initiated: Jan. 3, 2022 amn the few bright spots in the fourth Quarter: Free Cash Flow Came in at $ 1.5 Billion, REPRESTING NEARLY 30% Growth Versus The Year -GO Period. The company also achieved a free cash flow to network ratio of 138%. For the full year, that ratio came in at 136%. Anything Above 100% means that a company’s earrnings are fully backed by cash, a sign of high-quality profits. Danaher cleared that bar – and then some. Additional, during the fourth quality and into january, danher repurchased about 8 million shares, totaling about $ 1.9 billion. Quarterly commentary danaher’s sales in developed markets came in roughly flat in the Quarter, as a low-hangle-digit decline in north America was offset by a low-star-diesle-digit in western europe. High-Growth Markets Were Up Low Single Digits as Momentum outseide of China more than offset a mid-Singhle-digit decline in China. Biotechnology core revenue was up 8% year over year, with orders Increasing High-Single-Digit Percentage Points on a Sequational Basis. In General, Core revival strips out the impact of foreign-exchange fluctuations, as well as as merges and acquisitions. It helps smooth out the year -over-yar comparisons and better Capture how the segment is performing. The biotechnology segment’s book-to-bill was about The segment’s adjusted operating Profit Margin was 38.6%, UP 200 Basis Points Year Over Year. A Basis point is equal to 0.01%. Bioprocessing sales were up high-single-digit percentage points, with the gradual recovery seen throughout the year continuing into the fourth question. In the key china market, mangement said “Activity Levels Were Relatively Stable,” but overall they remain weak due to a Dificult Funding Environment. Life Sciences Core Revenue was up 1% Year Over Year. The segment’s Adjusted Operating Profit Margin Expeded 320 Basis Points Year Over Year, to 25.8% Instruments SAles SAles Slightly, OutPacing MANAGENTIS AND Slightly, OutPacing MANAGENTIS AAXERESED Slightly, OutPacing MANAGEMENTES IN A and Europe. In China, Ceo Rainer Blair said danher observed “Modest Demand Improvements” during the Quarter. “While we did see a modest benefit from the Ongoing Stimulus Program, Market Conditions Continue to Be Challenging as Customers Remain Cuati Investments,” He Said. Diagnostics Core Revenue Declined 2% Year Over Year. The segment’s Adjusted Operating Profit Margin Contracted 170 Basis Points Versus The Year -Go Period, to 29.2% Clinical Diagnostics Businesses Realized Combined Core Revenue in the new ed by leica biosystems, where sales were up near 10% year Over year. Cepheid Respiratory Sales Came in $ 550 Million, Well ahead of the roughly $ 350 million expected by management, due to if you want to increase Volumes and a favorite sales mix of danher-in-theaer ‘ Flu B, and Respiratory SyncyTial Virus, or rsv. Guidance for the Current Quarter, Danher Expects Core Revenue to Decline to Decline in the low single digits versus last year, Missing expectations of a 2.9% Increase, According to Estimates Compleed by Factset. Danaher’s Adjusted Operating Profit Margin is expected to be live 26.5%, below the 30% the street was looking for. Biotechnology core revered is expected to increase 6% to 7% meaning, core revneue for both the life Sciences and Diagnostics Segments is expected to be Down-SINGLE-DOWN MIDNLE-DOWN MOWN MOWN MOWN MOWN MOWN MOWN MOWN For the full year, management forecasts 3% Core Revenue Growth, also a miss versus expectations for a roughly 5% increase, according to factsset. The adjusted operating profit margin is expected to be approximately 28.5%, below the wall street consensus of 29.7%. Biotechnology Core Revenue Growth is Expected to Be Between 6% and 7%, A Miss Versus Analyst Expectations for An 8% Year Over Year Increase, Per factsset. Life Sciences Core Revenue Growth is projection to be up low-hangle-digit permentage points. That compares to the wall street consensus of 4% annual growth. Diagnostics Core Revenue Growth is expected to be in the range of flat to up low-low-dogit percentage points. That compailes to a mid-single-digit annual growth estimate. (Jim Cramer’s Charitable Trust is long dhr. See here for a full list of the stocks. Jim Waits 45 Minutes after Sending a Trade Alert Before Buying or Selling a Stock in his Charitable Trust’s Portfolio. If jim has talked about a stock on CNBC TV, He Waits 72 hours after is the trade alert alert before executing the trap. 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A Worker Uses a Machine Made By Pall Corp. DURING A Demonstration of the Clarification Stage of the production of influenza vaccine during a tour at a sanofi pasteur vaccine production facility in Swiftwater, Pennsylvania.
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Danaher Shares are under pressure wedding as the club holding’s fourth -Quarter earnings results came in mixed and guidance disappointed. The company long knowledge for its operational excellence is further testing our patience.
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