Story updated at 9:55 a.m. to reflect market activity.
Danaher stock fell -0.7% to $74.68 in morning trading.
The bank also lowered its EPS estimates for the company through 2015. The lower price target and EPS estimates are due to Danaher's lowered guidance according to Deutsche Bank analysts.
Separately, TheStreet Ratings team rates DANAHER CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DANAHER CORP (DHR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DHR's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- DHR's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, DHR has a quick ratio of 1.58, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for DANAHER CORP is rather high; currently it is at 57.53%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.62% is above that of the industry average.
- Net operating cash flow has increased to $991.70 million or 10.28% when compared to the same quarter last year. In addition, DANAHER CORP has also vastly surpassed the industry average cash flow growth rate of -65.57%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Industrial Conglomerates industry average. The net income increased by 9.7% when compared to the same quarter one year prior, going from $616.80 million to $676.40 million.
- You can view the full analysis from the report here: DHR Ratings Report