Danaher reports 3Q16 earnings
Danaher Corporation (DHR) reported its 3Q16 earnings on October 20. The company reported adjusted EPS (earnings per share) of $0.87, which beat consensus estimates by $0.05. In growth terms, the adjusted EPS was 22.5% higher than last year’s third quarter, and the earnings announcement resulted in a rise of 3.9% for the stock, which closed at $80.18 that day.
Among competitors, Dover (DOV) and Abbott Laboratories (ABT) declared their earnings on October 18 and October 19, respectively. 3M Co (MMM) and Dentsply Sirona (XRAY) are expected to declare their earnings on October 25 and October 26, respectively.
How did Danaher achieve double-digit EPS growth?
Danaher’s EPS growth was driven mainly by an operating margin expansion of 320 basis points over last year. The company’s efficiency and integration efforts related to recent acquisitions are likely to gather steam and result in strong margin improvements in upcoming quarters as well.
Operating margins in the Life Sciences and Diagnostics segments, where most of the acquisitions are being integrated, have seen YoY (year-over-year) expansions of 900 basis points and 250 basis points, respectively, in the third quarter.
On the recent quarterly performance, Thomas Joyce, Jr., President and Chief Executive Officer of Danaher, stated: “Our team executed well despite the economic backdrop, and we were pleased with our performance in the third quarter as the strength and diversity of our portfolio continued to be a key differentiator.”
Joyce added that “since July, we announced two strategic acquisitions, of Cepheid and Phenomenex. We believe that the addition of these businesses into our Diagnostics and Life Sciences segments, respectively, will enhance our portfolio’s strategic positions and broaden our product offering to customers.”