Danaher Slashes Revenue Outlook, Biotech Miss Sends Shares Down 14%
DHR is trading near its 52-week low of $160.93 (9.7% above the low) on elevated volume (3.3× avg).
Summary
Danaher cut its full-year core revenue growth outlook to 3%-4% from 3%-6%, citing weaker respiratory testing revenue, and reported a biotech revenue miss that overshadowed a raised profit forecast. The company now expects adjusted EPS of $8.45-$8.60, up from $8.35-$8.55, but shares fell about 14% as the market focused on the top-line disappointment. Over $100 million in bioprocessing revenue shifted into next year due to shipment timing, adding to concerns. This follows a strong Q2 beat reported earlier today, but the guidance cut and biotech weakness mark a sharp reversal in sentiment. The Masimo acquisition closed last quarter, doubling debt to $26.6 billion, making revenue growth critical for deleveraging.
At the time of this announcement, DHR was trading at $176.50 on NYSE in the Life Sciences sector, with a market capitalization of approximately $124.9B. The 52-week trading range was $160.93 to $242.80. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.