Danaher beats profit estimates on respiratory testing demand

Veralto

24/10/2023 12:48

Oct 24 (Reuters) - Danaher  DHR.N  on Tuesday beat Wall
Street estimates for third-quarter profit as strong demand for
its diagnostic tests for respiratory diseases helped soften the
blow from weaker sales at the healthcare conglomerate's
life-sciences unit. 
    The diagnostics unit, which makes kits, also used for
COVID-19 testing, as well as reagents and other tools, reported
sales of $2.25 billion, beating the average analyst estimate of
$2.12 billion, according to LSEG data.
    However, the life sciences unit, which provides reagents and
lab equipment used in the discovery of new drugs and vaccines,
posted sales of $1.71 billion, missing estimates of $1.78
billion.
    "Revenue in the third quarter came in ahead of our
expectations, with Biotechnology performing as anticipated, and
higher respiratory testing revenue more than offsetting slightly
softer-than-anticipated demand in Life Sciences," Danaher CEO
Rainer Blair said in a statement. 
    Shares of the Washington D.C.-based company rose 1.2% to
$206.50 before the bell.  
    Danaher now expects a slight decline in adjusted core sales
for the year, compared with its previous expectation of a low
single-digit rise. 
    Life sciences companies such as Danaher, Agilent  A.N  and
Thermo Fisher  TMO.N  cut their annual profit forecasts earlier
this year as some clients slashed their budgets for biopharma
services due to a funding crunch. 
    Rising interest rates squeezed funding needed for drug
development programs, weighing on demand for contract research
services offered by Danaher and rival Thermo Fisher. 
    Danaher's forecast excludes the impact of the spinoff of its
Environmental & Applied Solutions unit, Veralto  VLTO.N , which
began trading on Oct. 2.
    On an adjusted basis, Danaher reported a profit per share of
$2.02, beating analysts' expectations of $1.87.
    Third-quarter sales of $6.87 billion also topped estimates
of $6.63 billion. 

 (Reporting by Christy Santhosh; Editing by Krishna Chandra
Eluri and Sriraj Kalluvila)
 ((Christy.Santhosh@thomsonreuters.com;))