2023-04-25 07:07:18 ET
Despite posting better-than-expected financials for Q1 2023, Danaher Corporation ( NYSE: DHR ) dropped ~5% pre-market Tuesday as the company's topline indicated a ~7% YoY contraction due to lower COVID-related sales.
"Our team's focused execution in a challenging operating environment helped deliver better-than-expected revenue, earnings and cash flow," Chief Executive Rainer Blair remarked before the earnings call at 8:00 a.m. ET.
The life sciences tool maker, which played a key role during the pandemic, reported $7.2B revenue for the quarter, backed by 6.0% growth in non-GAAP base business core revenue. However, lower COVID-19 revenue led to a 4.0% decline in non-GAAP core revenue.
"We are especially pleased with the performance of our base business, which grew 6.0% in the first quarter," Blair added.
Sales from the Biotechnology and Diagnostics segments plunged ~16% and 10% YoY, respectively, while the contribution from the life sciences segment grew ~3% YoY.
Meanwhile, the adjusted free cash flow from continuing operations reached $1.7B, and operating cash flow stood at $1.9B, indicating ~3% YoY and ~1% YoY declines, respectively.
For Q2 and full year 2023, Danaher ( DHR ) projects its non-GAAP base business core revenue growth to rise mid-single digits and non-GAAP core sales to drop high single digits amid a low double-digit impact in COVID-19 related testing, vaccines, and therapeutics.
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Danaher slips despite Q1 beat as lower COVID sales hurt topline