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Danaher to Declare Its First Earnings after Fortive Separation

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Danaher to declare 3Q16 earnings

Danaher Corporation (DHR), which became a diversified healthcare (IHF) company after its restructuring actions, is slated to declare its 3Q16 earnings on October 20. Among its competitors, Abbott Laboratories (ABT) and 3M (MMM) are scheduled to declare their earnings on October 19 and October 25, respectively.

The estimated earnings dates of Dover Corporation (DOV) and Dentsply Sirona (XRAY) are October 18 and 26, respectively.

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Danaher 3Q16 and fiscal 2016 guidance

The consensus Wall Street estimate is for Danaher (DHR) to post adjusted earnings per share (or EPS) of $0.83 on sales of ~$4.1 billion. These earnings are in line with the company’s 2Q16 earnings call, in which it guided adjusted earnings per share in the range of $0.80–$0.84.

Because a substantial portion of the company was separated into a standalone public company this year, year-over-year comparisons are not meaningful. Based on pro forma consolidated statements that reflect Fortive Corporation (FTV) as a discontinued operation, Danaher had sales of ~$3.5 billion and adjusted EPS of $0.71 in 3Q15.

The company stated that its core organic growth in the quarter is likely to be ~3%. In its 2Q16 earnings call, the company guided its fiscal 2016 earnings in the $0.80–$0.84 range. At the midpoint of the company’s guidance, this represented a growth of 20% over 2015. The guidance is based on a core margin expansion of 50 to 75 basis points and assumes that the performance in 2H16 to be better than 1H16.

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