RGEN - Danaher falls despite Q2 beat amid underwhelming guidance

2023-07-25 07:30:47 ET

Despite posting better than expected financials for Q2 2023, Danaher Corporation ( NYSE: DHR ) slipped ~5% pre-market Tuesday as the U.S. life sciences company lowered its full-year outlook amid falling COVID-related revenue.

Danaher’s ( DHR ) rivals in the life sciences space, Thermo Fisher Scientific ( TMO ), Repligen ( RGEN ), and Bio-Rad Laboratories ( BIO ), also dropped in reaction.

The company reported $7.2B in revenue for the quarter, with an 8% YoY decline as non-GAAP core revenue fell ~7% YoY, mainly due to lower COVID-related revenue.

However, non-GAAP core revenue from the base business grew 2% compared to the mid-single-digit growth the company projected with its Q1 2023 results in April.

"We are pleased with our second quarter results which met our expectations, despite a more dynamic operating environment," CEO Rainer Blair remarked ahead of the conference call at 8:00 a.m. ET.

Meanwhile, non-GAAP net earnings per diluted share dropped to $2.05 from $2.76 in the prior-year quarter, while non-GAAP free cash flow reached ~$1.6B compared to $1.7B forecasted by analysts.

For the full year, Danaher ( DHR ) projects its non-GAAP base business core revenue will grow in the low single digits despite an estimated decline in the low single digits in Q3 2023.

In April, Danaher ( DHR ) projected its non-GAAP base business core revenue would grow in the mid-single digits.

More on Danaher

• Danaher said to be interested in acquiring contract manufacturer Catalent
• Danaher: A Compounding Icon At A Fair Price

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