Danaher Corporation (DHR), headquartered in Washington, District of Columbia, is a global science and technology leader focused on driving innovation in life sciences, diagnostics and biotechnology. Valued with a market capitalization of $152.4 billion, the company designs, manufactures and markets instruments, consumables and services that support drug discovery, genomics, molecular diagnostics and laboratory automation.
This healthcare company has significantly underperformed the broader market over the past 52 weeks. DHR shares have fallen 8.4% during this period, while the broader S&P 500 index ($SPX) has gained 14.5%. Additionally, on a year-over-year basis, the stock is down 4.4%, compared to SPX’s 16.5% return.
To narrow the focus, DHR has also lagged the iShares US Healthcare ETF’s (IYH) gain of 3.4% over the past 52 weeks and 10.3% year-to-date.
DHR stock rose 5.9% after it reported its impressive third-quarter results. The company’s revenue rose 4.4% year over year to $6.1 billion, beating consensus estimates by a small margin. Additionally, its adjusted EPS of $1.89 improved 10.5% from the prior-year quarter, beating analyst expectations of $1.71. DBS-driven execution, coupled with continued momentum in its bioprocessing business and better-than-expected respiratory revenue at Cepheid, contributed to its upbeat performance.
For the current fiscal year, which ends in December, analysts expect DHR’s EPS to grow 3.2% year over year to $7.72. The company’s history of earnings surprises is mixed. It surpassed consensus estimates in three of the last four quarters, but missed the mark another time.
Among the 22 analysts covering the stock, the consensus rating is “Strong Buy,” which is based on 18 “Strong Buy” and four “Hold” ratings.
This setup is less bullish than two months ago, with 19 analysts suggesting a “Strong Buy” rating.
On October 23, Wells Fargo & Company (WFC) maintained an “Equal Weight” rating on DHR and raised its price target to $230, indicating potential upside of 4.8% from current levels.