Danaher Corporation
CEO : Mr. Rainer M. Blair
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 2.7% YoY | 7.2% | 21.2% | 2023-01-24 |
Rainer Blair says,
Financial Highlights
- Delivered nearly 10% core revenue and adjusted earnings per share growth for the full year 2022, including 8% core revenue growth in the base business.
- Expanded core operating margins by 60 basis points and generated $7.4 billion of free cash flow.
- Invested over $1.7 billion in research and development in 2022 to accelerate innovation across Danaher.
Bioprocessing Segment
- Robust customer activity across monoclonal antibodies, cell and gene therapies, and antibody drug conjugates drove more than 20% growth in non-COVID revenue.
- COVID-19-related vaccine and therapeutic revenue expected to be approximately $150 million for the full year of 2023, down from approximately $800 million in 2022 and lower than the previous expectation of $500 million.
Life Sciences Segment
- Reported revenue grew 8%, and core revenue was up 13%.
- All major businesses delivered high single-digit or better core revenue growth.
- Good momentum in opportunity funnels as they begin the new year.
Diagnostics Segment
- Reported revenue was up 3%, and core revenue grew 7.5%.
- Cepheid’s respiratory testing revenue of approximately $1.1 billion in the fourth quarter significantly exceeded the expectation of approximately $375 million.
- Expect to ship 30 million respiratory tests and generate $1.2 billion of revenue for the full year 2023.
Financial Outlook
- Expect high single-digit core revenue growth in the non-COVID bioprocessing business for the full year 2023.
- COVID-19-related vaccine and therapeutic revenue expected to be approximately $150 million for the full year of 2023.
- Expect to ship 30 million respiratory tests and generate $1.2 billion of revenue for the full year 2023.
Matthew McGrew says,
Bioprocessing Growth
- Excluding COVID, 7-8% growth over the last four years.
- 2020 saw 20%+ growth as the company moved towards more COVID work.
- 2021 and 2022 also saw 20%+ growth.
- 2023 guide is high single-digit growth.
Inverse Barbell
- Bioprocessing growth in ’20 and ’23 is high single digits.
- In ’21 and ’22, growth was 20%+ as the company moved towards COVID work.
Previous Years’ Growth
- Looking at the last three to four years, demand has been about the same.
- Order pattern may be different.
Q & A sessions,
Expected Impact on DHR Stock Movement Based on Q4 2022 Earnings Call Transcript
- DHR expects mid-single-digit base business growth in Q1 with a decline of mid-single digits due to COVID testing, including vaccine and therapeutics.
- Bioprocessing non-COVID business is expected to be low single digits in Q1 due to inventory pockets and lower patient volumes in China as zero COVID policies are ended.
- The underlying demand for bioprocessing growth remains robust and unchanged, with mid-teens growth CAGRs for bioprocessing non-COVID in the two-to-four year stacks.
- Full year China guide is low single digits with the potential for upside should pent-up demand be released in 2023.
- Margins for the full year expected to be around 31% with a bit lower value of leverage due to the loss of COVID headwinds and $2.5 billion of testing follow-up as we think we get to a more endemic state on Cepheid testing.
No bad stock 