Danaher Q3 Earnings Exceed Consensus Despite Weak Life Sciences Demand

Danaher Corp DHR reported Q3 FY23 adjusted EPS of $2.02, down from $2.56 a year ago, surpassing the consensus of $1.87.

Sales decreased 10.5% Y/Y to $6.87 billion, beating the consensus of $6.63 billion. Non-GAAP core revenue decreased 11.5%, including a 3.0% non-GAAP base business core revenue decline.

Operating cash flow for the third quarter was $1.7 billion, and non-GAAP free cash flow was $1.3 billion.

"Revenue in the third quarter came in ahead of our expectations, with Biotechnology performing as anticipated, and higher respiratory testing revenue more than offsetting slightly softer-than-anticipated demand in Life Sciences. DBS-driven execution also enabled us to deliver better-than-expected earnings and cash flow in what remains a challenging operating environment," said Rainer M. Blair, President and CEO.

The company completed the spin off of Veralto in the quarter.

Guidance: For Q4, Danaher expects non-GAAP base business core revenue from continuing operations to be down mid-single digits Y/Y.

For FY23, the company now anticipates non-GAAP base business core revenue growth to be down slightly Y/Y.

Also Read: Danaher Bears The Brunt Of Macro Woes: Analyst Flags Lower Demand, Reduced Funding & Weakness In China

Price Action: DHR shares are trading higher by 1.20% at $206.50 premarket on the last check Tuesday.