Danaher beats quarterly profit estimates on strong demand for bioprocessing unit

Sartorius AG

22/10/2024 12:11

Oct 22 (Reuters) - Danaher  DHR.N  on Tuesday beat Wall
Street estimates for third-quarter profit on strong demand for
its diagnostics and bioprocessing businesses, alongside growth
in its molecular testing unit.
    Shares of the life sciences company rose 2.5% to $278 before
the bell.
    However, the Washington, D.C.-based company expects a
low-single-digit decline in its fourth-quarter adjusted revenue
year-over-year.
    High interest rates have forced biotech companies, clients
of life science firms, to reduce spending since 2023, but recent
interest rate cuts give some analysts hope for a near-term
turnaround, as borrowing costs might ease.
    On October 17, the company's German peer Sartorius  SATG.DE 
posted better-than-expected results for nine months on the rise
of bioprocessing orders.
    The company's diagnostics business, which makes COVID-19 and
genetics testing kits, posted sales of $2.36 billion, topping
estimates of $2.19 billion.
    Its life sciences unit, which provides reagents and lab
equipment used in the discovery of new drugs and vaccines,
posted sales of $1.78 billion, compared with estimates of $1.76
billion.
    Danaher said it saw strength in its molecular testing unit
Cepheid which gained market share this quarter.
    Danaher reported third-quarter revenue of $5.8 billion,
beating analysts' estimates of $5.60 billion.
   On an adjusted basis, Danaher reported a profit of $1.71 per
share for the third quarter, beating analysts' average estimates
of $1.57 per share.

 (Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by
Vijay Kishore)
 ((SruthiNarasimha.Chari@thomsonreuters.com;))