Home Healthcare Danaher Corporation (NYSE: DHR) Reports First Quarter Earnings, Shares Sink

Danaher Corporation (NYSE: DHR) Reports First Quarter Earnings, Shares Sink

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Danaher
Danaher

Danaher Corporation (NYSE: DHR) extends its drop 1.07% in pre session from previous drop of around 9% after the firm released results for the first quarter 2023.  Net earnings refer to net earnings attributable to common shareholders.

Net earnings were $1.4 billion, or $1.94 per diluted common share, for the quarter ended March 31, 2023, and non-GAAP adjusted diluted net earnings per common share were $2.36. Revenues fell 7.0% year on year to $7.2 billion, with a 4.0% decline in non-GAAP core revenue owing to reduced COVID-19 revenue and a 6.0% increase in non-GAAP base business core revenue.

Non-GAAP free cash flow was $1.7 billion, while operating cash flow was $1.9 billion. Because projecting the other components of GAAP revenue, such as currency translation, acquisitions, and divested product lines, is challenging, the Company only publishes expected sales on a non-GAAP basis.

The Company estimates non-GAAP base business core revenue growth in the mid-single digits for the second quarter and full year 2023.

President and Chief Executive Officer, Rainer M. Blair stated that they had a good start to the year in the first quarter.  Their team’s focused performance in a difficult operating environment contributed to higher-than-expected sales, profitability, and cash flow. They are especially happy with their core business, which climbed 6.0% in the first quarter.

“Looking ahead,” Blair added, “we believe that the combination of our leading businesses, the power of the Danaher Business System, and the strength of our balance sheet differentiates Danaher and positions us to continue delivering sustainable, long-term shareholder value.”

Outlook

Danaher anticipates mid-single-digit adjusted base business core revenue increase in the second quarter of 2023. In addition, the business anticipates mid-single-digit increase in the metric in 2023. Organic sales are expected to rise in the high single digits in the second quarter and year.

Danaher ended the first quarter with $7,379 million in cash and equivalents, up from $5,995 million at the end of 2022. Long-term debt at the end of the reporting quarter was $18,261 million, compared to $19,086 million at the end of December 2022.

Danaher earned $1,947 million in net cash from operating activities at the end of the first quarter of 2023, compared to $1,968 million the previous year. Capital expenditures totalled $275 million over the same period, an increase of 10% year on year. Adjusted free cash flow was $1,672 million at the end of the first quarter, compared to $1,720 million the previous year.