The company, Danaher (DHR, Financial), has highlighted the challenges it faces in providing precise forecasts for its core sales growth and adjusted diluted earnings per share. The firm has chosen not to reconcile these non-GAAP measures with GAAP measures, citing the unpredictable nature of certain future factors that can significantly impact their financial results. These elements, influenced by variables such as currency exchange rates effective as of June 27, 2025, can be difficult to forecast and often lie beyond the company's control. Danaher acknowledges that these factors could materially affect results if calculated under GAAP standards.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Danaher Corp (DHR, Financial) is $244.62 with a high estimate of $310.00 and a low estimate of $210.00. The average target implies an upside of 30.07% from the current price of $188.07. More detailed estimate data can be found on the Danaher Corp (DHR) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Danaher Corp's (DHR, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Danaher Corp (DHR, Financial) in one year is $245.16, suggesting a upside of 30.36% from the current price of $188.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Danaher Corp (DHR) Summary page.
DHR Key Business Developments
Release Date: April 22, 2025
- Revenue: $5.7 billion in the first quarter, with core revenue flat year-over-year.
- Gross Profit Margin: 61.2%, up 100 basis points year-over-year.
- Adjusted Operating Profit Margin: 29.6%, down 50 basis points.
- Adjusted Diluted Net Earnings Per Share: $1.88.
- Free Cash Flow: $1.1 billion, with a free cash flow to net income conversion ratio of more than 110%.
- Biotechnology Segment Core Revenue Growth: Increased 7%, with bioprocessing up high single digits.
- Life Sciences Segment Core Revenue: Decreased by 4%.
- Diagnostics Segment Core Revenue: Declined 1.5%.
- Full Year 2025 Core Revenue Growth Expectation: Approximately 3%.
- Full Year 2025 Adjusted Diluted EPS Guidance: $7.60 to $7.75.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Danaher Corp (DHR, Financial) reported first-quarter revenue, earnings, and cash flow ahead of expectations, driven by strong momentum in bioprocessing and higher-than-anticipated respiratory demand at Cepheid.
- The company achieved a gross profit margin of 61.2%, up 100 basis points year-over-year, indicating improved profitability.
- Danaher Corp (DHR) generated $1.1 billion of free cash flow in the quarter, resulting in a free cash flow to net income conversion ratio of more than 110%.
- The company is making significant investments in long-term growth initiatives, resulting in impactful new product launches across its Biotechnology, Life Sciences, and Diagnostics segments.
- Bioprocessing segment showed strong performance with core revenue increasing by 7%, driven by low double-digit growth in consumables and robust demand for commercialized therapies.
Negative Points
- Core revenue in the Life Sciences segment decreased by 4%, with a decline in life sciences instrument businesses and weaker demand for plasmids and mRNA.
- Core revenue in the Diagnostics segment declined by 1.5%, impacted by volume-based procurement and reimbursement changes in China.
- The company faces several hundred million dollars in gross impact from tariffs, although it plans to offset this through supply chain adjustments and other measures.
- Danaher Corp (DHR) experienced a high single-digit decline in core revenues within China, primarily affecting its diagnostics businesses.
- The macroeconomic environment remains dynamic with rising geopolitical and trade tensions, contributing to greater uncertainty across global markets.
