Danaher Corporation (NYSE:DHR) Annual Evercore ISI HealthCONx Healthcare Conference December 4, 2024 3:25 PM ET Company Participants Rainer Blair - President and CEO Conference Call Participants Vijay Kumar - Evercore ISI Vijay Kumar Great. Thanks, everyone, for joining us this afternoon. I'm Vijay Kumar, the Life Science Device Analyst at Evercore. A pleasure to have with us the team from Danaher. We have CEO, Rainer Blair and we have, I think, Travis, -- as well as Travis and John in out there . So, Raine ...

Danaher Corporation (NYSE:DHR) Conference Call Summary Company Overview - **Company**: Danaher Corporation - **Event**: Annual Evercore ISI HealthCONx Healthcare Conference - **Date**: December 4, 2024 - **Participants**: Rainer Blair (President and CEO), Vijay Kumar (Evercore ISI Life Science Device Analyst) Key Points Industry and Company Performance - **Third Quarter Performance**: Danaher reported a solid performance in Q3, with both Cepheid and bioprocessing outperforming expectations. Life Science and diagnostics businesses met expectations, indicating strong underlying drivers continuing into Q4 [5][11][15]. - **Bioprocessing Growth**: The company has seen five consecutive quarters of sequential orders growth, with high single-digit growth in Q3. The book-to-bill ratio has been near one, indicating stable order flow [15][20]. Market Dynamics - **China Tariffs and Manufacturing**: Danaher primarily manufactures in China for local supply, indicating a region-for-region supply chain. The company is prepared to manage potential impacts from political changes and tariffs [6][12]. - **NIH Exposure**: Less than 5% of Danaher's business is related to academic and research, with less than 1% tied to NIH funding, suggesting limited exposure to potential funding cuts [10]. Customer Segmentation - **Customer Base**: Approximately 75% of Danaher's business comes from large customers with commercial programs, while 20-25% is from smaller customers. Larger customers have returned to normal ordering patterns, while smaller customers are more cautious with funding [16][18]. M&A Landscape - **M&A Activity**: The company is positioned well for potential M&A opportunities, focusing on smaller to medium-sized bolt-on deals due to high market multiples [12][13]. Bioprocessing and Market Outlook - **Gradual Recovery**: Danaher anticipates a gradual recovery in biopharma, supported by strong demand for monoclonal antibodies. The company expects continued growth in the bioprocessing market, projecting high single-digit growth long-term [22][25]. - **China Market**: The Chinese market is currently at a lower activity level due to constrained venture capital and regulatory challenges. Danaher expects a return to historical growth rates over time [30][31]. Diagnostics Segment - **Non-Respiratory Growth**: The non-respiratory diagnostics business has seen significant growth, driven by an expanded installed base and new assay launches. The penetration of molecular diagnostics is below 40%, indicating room for future growth [42][45]. - **Respiratory Business**: The respiratory diagnostics segment is projected to stabilize at an endemic level of $1.5 billion to $1.6 billion, with ongoing improvements in testing capabilities [48][49]. Financial Metrics and Guidance - **Margins and Incrementals**: Danaher expects operating margins in the low- to mid-30s with incrementals of 35% to 40% as growth rates approach high single digits [77]. - **Fiscal 2025 Considerations**: Key factors for 2025 include order book development, the impact of potential stimulus in China, and foreign exchange rates [80][82]. Innovation and Future Growth - **Beckman Diagnostics**: The Beckman segment is expected to accelerate growth due to strong patient volumes, innovative products, and improved commercial execution [53][56]. - **Digital Diagnostics**: Leica Biosystems is positioned well in digital diagnostics, with ongoing developments in AI and digital support for pathologists [60][62]. Additional Insights - **Liquid Biopsy Interest**: Danaher is exploring opportunities in cancer diagnostics, including liquid biopsy, as part of its broader strategy to enhance diagnostic capabilities [63]. - **Instrumentation Growth**: The instrumentation segment has shown signs of stabilization, with expectations for growth in the coming year [64][68]. This summary encapsulates the key insights and strategic outlook from Danaher Corporation's recent conference call, highlighting the company's performance, market dynamics, and future growth opportunities.

WASHINGTON, Nov. 26, 2024 /PRNewswire/ -- Danaher Corporation (NYSE: DHR) announced that President and Chief Executive Officer, Rainer M. Blair, will be presenting at the Evercore ISI HealthCONx Conference in Coral Gables, Florida on Wednesday, December 4, 2024 at 3:25 p.m. ET. The event will be simultaneously webcast on www.danaher.com.ABOUT DANAHERDanaher is a leading global life sciences and diagnostics innovator, committed to accelerating the power of science and technology to improve human health. Our ...

Core Insights - Danaher's international operations are critical for understanding its financial resilience and growth potential, especially in the context of a highly interconnected global economy [2][3] - The company's total revenue for the quarter ending September 2024 was $5.8 billion, reflecting a decrease of 15.6% [4] International Revenue Breakdown - Other developed markets generated $299 million, accounting for 5.2% of total revenue, surpassing Wall Street's estimate of $280.26 million by +6.69% [5] - High-growth markets contributed $1.72 billion, or 29.7% of total revenue, falling short of the consensus estimate of $1.81 billion by -4.61% [6] - Western Europe represented 22.8% of total revenue, translating to $1.32 billion, exceeding expectations by +11.32% compared to the forecast of $1.19 billion [7] Future Revenue Expectations - Analysts project Danaher to report $6.43 billion in total revenue for the current fiscal quarter, indicating a slight increase of 0.5% from the previous year [8] - For the entire year, total revenue is forecasted at $23.74 billion, a reduction of 14% from the previous year, with contributions expected from Other developed markets (5.1% or $1.21 billion), High-growth markets (30.5% or $7.23 billion), and Western Europe (22.1% or $5.25 billion) [9] Conclusion on International Operations - Danaher's reliance on international markets presents both opportunities and challenges, making it essential to monitor international revenue trends for accurate future projections [10]

On Tuesday, Danaher Corp DHR reported third-quarter sales of $5.79 billion, up 3% year-over-year, beating the consensus of $5.59 billion. Guidance: Danaher reaffirms that in fiscal year 2024, non-GAAP core revenue will be down in the low single digits year over year. The company forecasts that 2024 bioprocessing core revenue will decline in the low single digits, and Cepheid 2024 respiratory revenues will be around $1.7 billion compared to prior guidance of $1.6 billion. William Blair reports that Danaher's ...

Danaher Corporation’s (DHR) third-quarter 2024 adjusted earnings (excluding 59 cents from non-recurring items) of $1.71 per share surpassed the Zacks Consensus Estimate of $1.56. The bottom line declined 0.6% year over year.Danaher’s reported net sales of $5.8 billion, which beat the consensus estimate of $5.6 billion. The metric increased 3.1% year over year, driven by robust sales in the Diagnostics and Life Sciences segments.DHR’s core sales increased 0.5%. Acquisitions had a positive impact of 2.5% on q ...

Tuesday, October 22nd, 2024 Following a week or two of seemingly higher and higher all-time closing highs, we see something of a pullback in stock market activity in the first two trading days of this week. There aren't any concrete reasons behind this — no economic data or dire Q3 reports impacting market sentiment — but more a cautious foreboding of what may be to come. The possible explanations for this are manifold. High market valuations naturally bring about caution, and in two weeks we potentially co ...

Financial Data and Key Metrics - Q3 2024 revenue was $5.8 billion, with 0.5% core revenue growth [6] - Gross profit margin was 58.7%, and adjusted operating profit margin was 27.5%, down 10 basis points due to accelerated innovation investments [6] - Adjusted diluted net earnings per share were $1.71, flat year-over-year [6] - Free cash flow was $1.2 billion for the quarter and $3.8 billion year-to-date, with a free cash flow to net income conversion ratio of 135% [6] Business Segment Performance - **Biotechnology Segment**: Core revenue was flat year-over-year, with bioprocessing up low single-digits and discovery and medical down high single-digits [7] - Bioprocessing orders increased high single-digits sequentially, marking the fifth consecutive quarter of sequential order improvement [7] - Book-to-bill ratio improved to approximately 1.0 [7] - **Life Sciences Segment**: Core revenue decreased by 2%, with life sciences instruments down mid-single-digits [10] - Consumables and service grew, offset by a decline in capital equipment, particularly in China [10] - **Diagnostics Segment**: Core revenue increased 5%, with clinical diagnostics up low single-digits and Cepheid up double-digits [14][15] - Cepheid's respiratory revenue was $425 million, exceeding expectations due to higher volumes and a favorable mix of tests [15] Geographic Performance - Developed markets saw low single-digit growth in North America and mid-single-digit growth in Western Europe [6] - High-growth markets declined mid-single-digits, with China down high single-digits [6] - In China, orders and activity levels remained weak, particularly for equipment, as customers delayed purchasing decisions [7][10] Strategic Direction and Industry Competition - The company is focused on life sciences and diagnostics, with a portfolio transformation aimed at higher long-term growth, expanded margins, and stronger cash flow [5] - Recent innovations include the Cydem VT cell culture system and the acquisition of Genedata, enhancing the company's competitive advantage [11][12] - The company expects a gradual recovery in bioprocessing, driven by large pharma and biopharma customers, with high single-digit core revenue growth anticipated in Q4 2024 [8][9] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong Q3 results, with revenue, adjusted net earnings, and cash flow exceeding expectations [4] - The company expects low single-digit core revenue decline for full-year 2024, with an adjusted operating profit margin of approximately 29% [18] - Management remains optimistic about long-term opportunities, particularly in bioprocessing and diagnostics, supported by innovation and the Danaher Business System [19] Other Important Information - The company completed the acquisition of Genedata, a provider of enterprise and workflow software for drug discovery and development [12] - Cepheid's non-respiratory reagent portfolio grew mid-teens, driven by menu adoption and system utilization [16] Q&A Session Summary Question: Instrument growth ex-China and trends in different markets - Instrument growth ex-China was low to mid-single-digits, with China down high single-digits [21] - Early signs of improvement in demand among pharma and biopharma customers in North America were noted [21] Question: 2025 outlook for life sciences and bioprocessing - Management is cautious about 2025, awaiting Q4 results and the impact of China's stimulus [22][23] - A gradual recovery in bioprocessing is expected to continue into 2025 [23] Question: Cepheid's respiratory revenue and market share gains - A significant portion of Cepheid's $425 million respiratory revenue beat was due to pull-forward purchases [29] - Market share gains were largely in the US, particularly in hospitals and near point-of-care settings [29] Question: 2025 core growth expectations and China's impact - The Street's expectation of 8% core growth for 2025 may be optimistic, given uncertainties around China's stimulus and respiratory comps [30][31] - Management emphasized the importance of Q4 order trends in shaping the 2025 outlook [31] Question: Book-to-bill ratio and its relevance - The book-to-bill ratio is not a primary metric for the company, but sequential order growth is encouraging [33] - Five consecutive quarters of order growth in bioprocessing indicate a gradual recovery [33] Question: Genomics trends and Rapid Genes launch - Gene reading markets remain soft, particularly among smaller customers, while gene editing shows strong performance [34] - The launch of Rapid Genes is expected to provide a tailwind over time [34] Question: Q4 operating margin and 2025 incremental margins - Q4 operating margin is expected to be approximately 30%, with full-year margins unchanged at 29% [35] - Incremental margins for 2025 will depend on volume and mix [36] Question: Small vs. large customers in bioprocessing - Large customers account for 75% of bioprocessing revenue, with smaller customers still cautious due to funding constraints [37] - The recovery has been gradual, with destocking largely behind us [37] Question: Buyback and M&A activity - The company completed its buyback in Q3 and remains active in M&A, though valuations are still elevated [39][40] Question: China's value-based pricing and local competition - Value-based pricing in China is expected to have a $150 million impact over three years, with activity ramping up [42] - Local competition in bioprocessing is more marginal, with multinational companies preferred for international sales [43] Question: Life science instrument trends - Capital equipment spending remained constrained, particularly in China, while consumables and service grew [45] Question: Abcam's performance - Abcam is transitioning well into Danaher, with progress in growth accelerators and cost positioning [46] Question: Diagnostics performance in China - Diagnostics revenue in China was down low double-digits, impacted by volume-based procurement [49][50] This concludes the summary of Danaher Corporation's Q3 2024 earnings call.

For the quarter ended September 2024, Danaher (DHR) reported revenue of $5.8 billion, down 15.6% over the same period last year. EPS came in at $1.71, compared to $2.02 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $5.59 billion, representing a surprise of +3.65%. The company delivered an EPS surprise of +9.62%, with the consensus EPS estimate being $1.56. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

| --- | --- | --- | --- | |------------------|----------------------|-------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | Danaher Corporation | | | | | | Third Quarter 2024 Earnings Release | | | | | | | | October 22, 2024 | | | | | | | | | | | | | | Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forwa ...