Danaher Reports Q3 Profits Despite Lowered Forecasts and Pressure on Key Businesses
Diagnostic unit sales catapult Danaher's Q3 results past expectations despite underperformance in the life sciences segment and ongoing economic pressures.
- Danaher Corp (DHR) reported a better than expected third-quarter profit, primarily driven by the strong performance of its diagnostics unit.
- The diagnostics unit's sales for Q3 amounted to $2.25 billion, surpassing the analysts' average estimate of $2.12 billion, partially due to increased demand for respiratory disease tests including COVID-19.
- However, the life sciences unit underperformed, with sales at $1.71 billion, missing the forecasted $1.78 billion.
- Although overall revenue for Q3 declined 11.5% year over year to $6.87 billion, it exceeded analysts' estimates of $6.63 billion.
- Danaher's management has lowered its sales expectations for the year citing a slight decline in adjusted core sales, marking a departure from its initial low single-digit growth prediction.