Danaher – the health-care and laboratory-supply company – reported a decrease in sales for the second quarter due to a decline in demand for Covid-19 products. Despite this, the company still managed to exceed analyst expectations.
- Profit: Danaher’s profit for the quarter stood at $1.11 billion, equivalent to $1.49 per share. This is lower than the previous year’s figures of $1.68 billion or $2.25 per share.
- Adjusted Earnings: After accounting for one-time items, the adjusted earnings per share came out to be $2.05, surpassing the analysts’ forecast of $2.01 per share.
- Sales: Sales experienced a decline of 7.5% and amounted to $7.16 billion. Despite this decline, it still managed to beat the analyst expectation of $7.12 billion.
- Core Sales: Adjusted core sales, which exclude the impact of currency fluctuations, fell by 7% primarily due to lower sales related to Covid-19 products. However, if we exclude Covid-19-related tests, vaccines, therapeutics, and currency fluctuations, sales would have actually seen a 2% increase.
- Life Sciences: The life-sciences division of Danaher reported a 5.5% growth in sales compared to the previous year.
- Environmental and Applied Solutions: This division experienced a 2% increase in sales.
- Diagnostics: Sales for diagnostics fell by 13%.
- Biotechnology: Sales in the biotechnology sector saw a decline of 17%.
Operating Cash Flow
The operating cash flow for Danaher in this quarter reached $1.93 billion, slightly below the analyst expectation of $2.04 billion.