Danaher Gears Up to Post Q4 Earnings: What Lies Ahead for the Stock?

Core Viewpoint - Danaher Corporation is expected to report its fourth-quarter 2024 results on January 29, with mixed expectations regarding revenue and earnings growth [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $6.44 billion, reflecting a 0.5% increase year-over-year [2]. - The consensus estimate for earnings is$ 2.16 per share, indicating a 3.4% increase from the previous year [2]. - The company has a trailing four-quarter earnings surprise average of 10.2% [2]. Segment Performance - Weakness in the Instrument businesses, particularly in the Life Sciences segment, is anticipated due to lower demand in the pharma and biotech markets in China, with organic revenues expected to decline by 2.6% year-over-year [4]. - The Biotechnology segment is also expected to be negatively impacted by decreased demand in the discovery and medical business [5]. - The Diagnostics segment is expected to show strength, driven by growth in Leica Biosystems and Beckman Colter Diagnostics units [6]. Expenses and Profitability - SG&A expenses are projected to be $2.1 billion, representing a 3.2% increase year-over-year, which may affect the bottom line [5]. - Foreign currency headwinds are likely to impact profitability due to the company's significant international operations [5]. Recent Developments - Danaher acquired Abcam plc in December 2023, which is expected to enhance the Life Sciences segment and address healthcare challenges [7]. Earnings Prediction Insights - The company has an Earnings ESP of +0.96%, with the Most Accurate Estimate at$ 2.18 per share, slightly above the Zacks Consensus Estimate [9]. - Danaher currently holds a Zacks Rank of 4 (Sell), indicating a lower likelihood of an earnings beat this quarter [9].