Danaher Corporation (DHR) is scheduled to report its third quarter and fiscal 2011 results on Wednesday October 20, 2011. The current Zacks Consensus Estimate for the quarter is 70 cents a share. For the quarter under review, revenue is $4.5 billion, according to the Zacks Consensus Estimate.
Second-Quarter 2011, a Synopsis
Danaher reported earnings from continuing operations of 65 cents, below the Zacks Consensus Estimate of 67 cents. Earnings for the quarter were up 23% compared with the prior-year quarter.
Adjusted diluted earnings from continuing operations which excludes contribution from Beckman Coulter was 69 cents, reflecting an increase of 28% year over year.
The company generated sales from continuing operations for 2011 of $3.7 billion, an increase of 15.5% year over year. Core revenue for the quarter was up 7.5%. Danaher continues to benefit from product innovations and its go-to-market initiatives.
Third-Quarter 2011 Zacks Consensus
The analysts considered by Zacks, expect Danaher Corpration to post third-quarter 2011 earnings of 70 cents a share. The current Zacks Consensus Estimate reflects an increase of 17.2% from the prior-year quarter’s earnings. The current Zacks Consensus Estimate for the quarter ranges between 68 cents and 73 cents a share.
Zacks Agreement & Magnitude
Among the analysts following the stock, one analyst has raised the estimate projection in the last 7 and 30 days, therefore, the Zacks Consensus Estimate is stagnant at 70 cents. In the last 30 days, one analyst lowered the projection, keeping the Zacks Consensus Estimate unchanged.
Mixed Earnings Surprise History
With respect to earnings surprises, Danaher Corporation has topped the Zacks Consensus Estimate over the last four quarters in the range of 2.9% to 9.1%. The average remained at 5.2%. This suggests that Danaher has beaten the Zacks Consensus Estimate by an average of 5.2% in the trailing four quarters.
Our View
The company expects to derive continued benefits from its new product investments as well as its increased penetration in the emerging markets. Further, the Beckman Coulter acquisition is also expected to be a major contributor in 2011 and beyond.
Danaher currently hold a Zacks #3 Rank, which implies a short term ‘Hold’ recommendation. Its major competitors include General Electric (GE), Tyco International (TYC), ITT Corp. (ITT) and 3M Co. (MMM).
