Danaher Corporation (DHR) reported first quarter 2011 earnings per share from continuing operations of 61 cents, exceeding the Zacks Consensus Estimate of 57 cents. This reflected a year-over-year increase of 42%.
Revenues from continuing operations for the 2011 first quarter were $3.3 billion, 11.0% higher than $3.0 billion reported for the first quarter of 2010. Revenues matched the Zacks Consensus Estimate. Core revenues increased 10% in the quarter compared to the first quarter of 2010.
Year-over-year gross margin for the first quarter increased 390 basis points to 52.7%, largely due to leverage from greater sales volumes, productivity improvements and the higher gross margins of newer businesses. This is the third consecutive quarter that the gross margin has exceeded 50%.
Operating margin in the first quarter increased 370 basis points year-over-year to 17.7%, with core operating margin up 245 basis points.
During the quarter, the company completed two acquisitions with aggregate annual revenues of approximately $250 million to strengthen its Product ID and Water Quality platforms. It announced the pending acquisition of Beckman Coulter.
Based in Brea, California, Beckman is a leading supplier of in-vitro diagnostic systems, including instruments, consumables and software for the biomedical laboratory market. Its clinical diagnostic systems are found in hospitals and other clinical settings around the world and deliver critical information to physicians to diagnose diseases, make treatment decisions and monitor patient care.
Segment Details
Test & Measurement revenues increased 27.5% for the quarter, with core revenues up 14%. Life Sciences & Diagnostics revenues for the quarter increased by 21.5%, compared to the prior year with core revenues up 9%.
Dental segment revenues increased 7.5% in the first quarter with core revenues up 5.5%. Industrial Technologies segment revenues increased 16% for the quarter with core revenues up 14.5%. Motion businesses' core revenues grew in excess of 20% in the quarter.
Outlook
The company initiated second quarter 2011 adjusted earnings per share from continuing operations guidance of 62 to 67 cents. It increased its full year adjusted earnings per share from continuing operations guidance from the prior range of $2.55 to $2.70, to a new range of $2.65 to $2.75 for 2011.
Danaher Corporation is a diversified technology company designing, manufacturing and marketing innovative products and services, which are typically characterized by strong brand names, proprietary technology and major market positions. SPX Corporation (SPW) is a direct competitor.
Danaher organizes its business into various operating segments: The Professional Instrumentation segment encompasses two strategic platforms: Test & Measurement and Environmental. The Medical Technologies segment encompasses three key businesses: Dental Equipment and Consumables, Life Sciences and Acute Care Diagnostics.
The Industrial Technologies segment encompasses two strategic platforms: Motion and Product Identification and three niche businesses; Aerospace and Defense, Power Quality, and Sensors and Controls.
The Tools & Components segment encompasses one strategic platform, Mechanics Hand Tools, and four focused niche businesses Jacobs Chuck, Delta Consolidated Industries, Hennessy Industries and Jacobs Vehicle Systems.
We currently have a Neutral recommendation on Danaher Corporation.
DANAHER CORP (DHR): Free Stock Analysis Report
Be the first to comment