DHR's first-quarter sales decrease 1% year over year, due to the lackluster performance of its Life Sciences and Biotechnology segments.
Danaher Corporation (NYSE:DHR ) Q1 2025 Earnings Conference Call April 22, 2025 8:00 AM ET Company Participants John Bedford - VP, IR Rainer Blair - President & CEO Matt McGrew - EVP & CFO Conference Call Participants Michael Ryskin - Bank of America Tycho Peterson - Jefferies Scott Davis - Melius Research Doug Schenkel - Wolfe Research Vijay Kumar - Evercore ISI Rachel Vatnsdal - JPMorgan Daniel Brennan - TD Cowen Daniel Arias - Stifel Operator My name is Chelsy, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to Danaher Corporation's First Quarter 2025 Earnings Results Conference Call.
The headline numbers for Danaher (DHR) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Danaher (DHR) came out with quarterly earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.62 per share. This compares to earnings of $1.92 per share a year ago.
DHR's first-quarter earnings are likely to have been aided by strength in the Biotechnology segment. However, weakness in the Diagnostics and Life Sciences segments are expected to have hurt.
Besides Wall Street's top -and-bottom-line estimates for Danaher (DHR), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Danaher (DHR) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
DHR is poised to gain from strength in the clinical diagnostics business, the Abcam buyout and shareholder-friendly policies. Softness in Life Sciences and Biotechnology units remains a concern.
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Danaher Corporation incorporates science and technology and has a market cap of $150B. The company has mixed financials, with its gross profit margin being its strongest and most consistent. DHR doesn't offer much in terms of dividend yield, but its above-average dividend growth could be attractive for dividend investors.
Danaher is well-positioned for revenue growth, driven by strong Biotechnology orders, Chinese stimulus in Life Sciences, and innovative products in Diagnostics despite near-term headwinds. Margins face short-term pressure from China's VBP initiative, but cost-cutting measures and operational efficiency should drive long-term margin expansion. The stock is undervalued compared to historical levels, trading at a discount to its average forward P/E over the last five years.
Danaher Corporation is trading near its 5-year low, presenting a potential buying opportunity for growth investors despite near-term headwinds. DHR's strong fundamentals include leadership in biotechnology, life sciences, and diagnostics, with robust profitability and free cash flow. Growth catalysts include advancements in bioprocessing, molecular diagnostics, and neurodegenerative disease detection, with expected EPS growth of 10%-13% annually over the next three years.