Danaher (NYSE:DHR) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Danaher Corporation shares experienced a significant increase, opening at $223.50 after closing at $208.39, following a better-than-expected earnings report that revealed a quarterly EPS of $1.89 versus the expected $1.71.
• The company also announced a quarterly dividend of $0.32, with an annualized yield of 0.6%, which will be paid on October 31st to shareholders of record as of September 26th.
• Following the earnings report, several analysts adjusted their price targets for Danaher, with analyst ratings ranging from "buy" to "hold," indicating a moderate buy sentiment based on a collective target price averaging around $245.00.

Shares of Danaher Corporation (NYSE:DHR - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $208.39, but opened at $223.50. Danaher shares last traded at $224.83, with a volume of 3,326,883 shares traded.

The conglomerate reported $1.89 EPS for the quarter, beating the consensus estimate of $1.71 by $0.18. The firm had revenue of $6.05 billion during the quarter, compared to the consensus estimate of $6 billion. Danaher had a return on equity of 10.70% and a net margin of 14.21%.The company's quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.71 earnings per share. Danaher has set its FY 2025 guidance at 7.700-7.800 EPS.

Danaher Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Friday, September 26th will be given a $0.32 dividend. The ex-dividend date of this dividend is Friday, September 26th. This represents a $1.28 annualized dividend and a yield of 0.6%. Danaher's payout ratio is currently 27.23%.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Rothschild & Co Redburn reissued a "neutral" rating and issued a $220.00 price objective (down previously from $245.00) on shares of Danaher in a research report on Wednesday, October 8th. Redburn Partners set a $220.00 price objective on Danaher in a research report on Wednesday, October 8th. Rothschild Redb lowered Danaher from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, October 8th. UBS Group lowered their target price on Danaher from $240.00 to $225.00 and set a "buy" rating on the stock in a research note on Wednesday, July 23rd. Finally, Royal Bank Of Canada set a $241.00 target price on Danaher in a research note on Tuesday, September 2nd. Seventeen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $245.00.

Insiders Place Their Bets

In other Danaher news, Director Teri List sold 2,778 shares of the company's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $211.06, for a total value of $586,324.68. Following the transaction, the director directly owned 20,751 shares in the company, valued at $4,379,706.06. This represents a 11.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 11.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Danaher

A number of hedge funds and other institutional investors have recently modified their holdings of DHR. GHP Investment Advisors Inc. boosted its holdings in shares of Danaher by 396.0% in the 1st quarter. GHP Investment Advisors Inc. now owns 124 shares of the conglomerate's stock worth $25,000 after purchasing an additional 99 shares in the last quarter. WFA of San Diego LLC purchased a new stake in Danaher during the 2nd quarter valued at about $26,000. Howard Hughes Medical Institute purchased a new stake in Danaher during the 2nd quarter valued at about $27,000. Sierra Ocean LLC boosted its holdings in Danaher by 116.9% during the 1st quarter. Sierra Ocean LLC now owns 141 shares of the conglomerate's stock valued at $29,000 after acquiring an additional 76 shares during the period. Finally, Red Tortoise LLC boosted its holdings in Danaher by 175.0% during the 2nd quarter. Red Tortoise LLC now owns 154 shares of the conglomerate's stock valued at $30,000 after acquiring an additional 98 shares during the period. 79.05% of the stock is currently owned by hedge funds and other institutional investors.

Danaher Price Performance

The company has a market capitalization of $161.66 billion, a PE ratio of 47.98, a PEG ratio of 2.98 and a beta of 0.77. The firm has a fifty day moving average of $201.76 and a two-hundred day moving average of $197.42. The company has a current ratio of 1.62, a quick ratio of 1.22 and a debt-to-equity ratio of 0.32.

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions.

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