Danaher (DHR - Get Report) on Thursday reported first-quarter earnings that beat analysts' forecasts though came in well lower than a year ago as costs related to its recent offer to purchase General Electric's (GE - Get Report) biopharma healthcare business offset revenue.
The science and technology consulting firm posted net income of $333.8 million, or 46 cents a share, vs. $566.6 million, or 80 cents a share, in the year-earlier period. On an adjusted basis, the company earned $1.07 a share, above the 99 cents posted a year ago and the $1.02 a share forecast by analyst surveyed by FactSet.
Revenue increased to $4.9 billion from $4.7 billion in the same period in 2018, with non-GAAP core revenue growth of 5.5%. Operating cash flow for the first quarter 2019 was $703.3 million and non-GAAP free cash flow was $548.4 million.
The lower earnings, however, reflected its recently announced offer to acquire GE's biopharma business, and costs required to finance it, the company said. Those same costs will also affect future earnings, the company said.
Danaher in late February announced that it would purchase the biopharma portion of GE's healthcare business for $20.5 billion in cash.
For the second quarter of 2019, Danaher said it now expects adjusted per-share earnings in the range of $1.13 to $1.16, below current FactSet consensus estimates of $1.19. For the full year, the company now anticipates adjusted earnings per share in the range of $4.72 to $4.80 vs. previous guidance of $4.75 to $4.85.
Shares of Danaher gained 2.9% to $128.51 in trading on Thursday.