Danaher Sees First-Quarter Revenue Gain of 3%, Withdraws Fiscal-Year Guidance

Danaher says results tailed off late in the quarter as the coronavirus spread.
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Danaher  (DHR) - Get Report, a diversified industrial and medical product and services company, announced Monday that it expects revenue growth of 3% for the quarter ended April 3.

It also anticipates non-GAAP core revenue growth of approximately 4.5% in the quarter. The company is withdrawing its full-year financial guidance because of the coronavirus.

"We anticipate positive results in each of our three reporting segments in the first quarter, with particular strength in our Cepheid, Radiometer, Pall and ChemTreat businesses,” CEO Thomas Joyce said in a statement.

“While we had a good start to the year, we saw a meaningful slowdown in demand toward the end of the quarter, particularly in our more instrument-oriented businesses, as the Covid-19 pandemic spread worldwide," the CEO added.

Cepheid focuses on molecular diagnostics, and three weeks ago it received emergency use authorization from the Food and Drug Administration for a 45-minute coronavirus test.

Radiometer focuses on bio-diagnostics, Pall on bio-fluid issues, and ChemTreat on water treatment.

As for Danaher’s pulled full-year 2020 forecast, it had predicted adjusted earnings per share of $4.80 to $4.90, with core revenue up about 5%. Analysts expected adjusted earnings of $5.34 a share.

The company will report first-quarter earnings on May 7.

On March 31, Danaher completed its $21.4 billion acquisition of the biopharma business from General Electric's  (GE) - Get Report life sciences division. At Danaher, the business will be called Cytiva and will be a standalone operating company within Danaher's life sciences segment.

Danaher shares closed at $145.73 Thursday, up 0.41%. The stock has slid 8% over the past three months, compared to a 15% drop for the S&P 500 index.