Declining COVID-19 Revenues Impact Danaher's Q1 Earnings, Lowers Annual Guidance - Danaher (NYSE:DHR)

Danaher Corp (NYSE: DHR) has logged Q1 FY23 adjusted EPS of $2.36, down from $2.76 a year ago, surpassing the consensus of $2.25.
Sales decreased 7% Y/Y to $7.17 billion, beating the consensus of $7.02 billion, with a 4% non-GAAP core revenue decrease, due to lower COVID-19 revenue and 6.0% non-GAAP base business core revenue growth.
Operating cash flow for Q1 FY23 reached $1.9 billion. Non-GAAP free cash flow reached $1.7 billion.
Rainer M. Blair, President & CEO, stated, "We had a good start to the year in the first quarter. Our team's focused execution in a challenging operating environment helped deliver better-than-expected revenue, earnings and cash flow. We are especially pleased with the performance of our base business, which grew 6.0% in the first quarter."
The gross margin remained almost unchanged at 61%.
According to a report last week, Danaher was no longer considering a takeover of contract manufacturer Catalent Inc CTLT after expressing interest in buying the company earlier this year.
Outlook: For the Q2 and full year 2023, Danaher anticipates that non-GAAP base business core revenue growth will be up mid-single digits year-over-year.
For FY23, the company earlier expected non-GAAP base business core revenue to be up high-single digits.
Price Action: DHR shares are down 4.17% at $243.75 during the premarket session on the last check Tuesday.

Why Danaher Shares Are Falling Today