Danaher Earnings Slip

Despite rising sales, Danaher (NYSE: DHR) reported falling profit in the third quarter. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.

Earnings and Revenue:
Investors cheered Danaher's latest numbers as the company announced EPS and revenues that topped predictions. The company reported adjusted net income of 73 cents/share versus the 70 cents/share estimate and revenues of $4.52 billion versus the $4.47 billion estimate. Revenue climbed 41.6% from the same period last year.
With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases. Danaher's revenue has grown during each of the past four quarters on a year-over-year basis.

Income:
For the year, Danaher reported net income of $2.70/share. The company trumped analyst projections of $2.62 by 3.1%. According to the reported number, the company's income fell 19% from last year's levels.

Conference Call:
The conference call for third quarter earnings can be accessed here.

Official Comment:
H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "We saw continued momentum across our businesses and were particularly pleased with our execution which led to outstanding year-over-year core revenue growth, core operating margin expansion, cash flow and earnings performance. As we are mindful that the environment is likely to be more challenging going forward, we anticipate increasing our previously announced fourth quarter restructuring efforts from approximately $50 million to approximately $100 million." .

Industry:
Danaher's industry, diversified operations, is currently reporting price/earnings growth of 1%. The company's EPS lags behind the industry average by 91.9%.

What to Do Next:
Now that you've gotten a round up of Danaher's latest numbers, you can make a better-informed decision about whether to buy, sell, or hold those shares. Whatever you do, be sure to visit us before the company's next earnings release for a full preview.

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