Summary
Danaher Corporation reported solid performance for the second quarter of 2019, with overall revenues increasing by 3.5% year-over-year, driven by a 5.5% increase in core sales. This growth was observed across both high-growth and developed markets, with particular strength noted in China and North America. The company is actively pursuing strategic growth initiatives, including the significant pending acquisition of GE Biopharma, which is expected to close in Q4 2019, and the planned initial public offering (IPO) of its Envista dental business in the second half of 2019. Despite revenue growth, net earnings saw a decrease for the six-month period compared to the prior year, primarily due to significant tax-related charges. The company is managing its liquidity effectively, with substantial cash reserves and various financing options in place to support its strategic objectives, including the substantial GE Biopharma acquisition. Investors should monitor the progress and potential impacts of these major transactions, as well as ongoing tax-related matters.
Financial Highlights
51 data points| Revenue | $4.44B |
| Cost of Revenue | $1.96B |
| Gross Profit | $2.48B |
| R&D Expenses | $282.10M |
| SG&A Expenses | $1.39B |
| Operating Income | $811.70M |
| Interest Expense | $19.70M |
| Net Income | $731.30M |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.97 |
| Shares Outstanding (Basic) | 717.60M |
| Shares Outstanding (Diluted) | 727.90M |
Key Highlights
- 1Total revenues increased by 3.5% for the three months ended June 28, 2019, compared to the prior year, driven by a 5.5% increase in core sales.
- 2High-growth markets contributed significantly to core sales growth, increasing at a high-single digit rate, representing approximately 31% of total sales in Q2 2019.
- 3The company is progressing with the acquisition of GE Biopharma, expected to close in the fourth quarter of 2019, and plans an initial public offering (IPO) for its Envista dental business in the second half of 2019.
- 4Net earnings for the six-month period decreased year-over-year, largely due to $227 million in net discrete tax charges related to prior period uncertain tax positions and audit settlements.
- 5Operating cash flow remained stable, increasing by 0.5% to $1.87 billion for the six months ended June 28, 2019.
- 6As of June 28, 2019, Danaher held approximately $5.4 billion in cash and cash equivalents, with significant proceeds raised from recent stock and preferred stock offerings intended to fund the GE Biopharma acquisition.
- 7The company is managing its debt effectively and remains compliant with its debt covenants, with plans to incur additional debt to finance the GE Biopharma acquisition.