Danaher Q1 Earnings Beat Estimates, Life Sciences Sales Down Y/Y

Core Insights - Danaher Corporation's first-quarter 2025 adjusted earnings were $1.88 per share, exceeding the Zacks Consensus Estimate of$1.62, but reflecting a 2.1% year-over-year decline [1] - The company reported net sales of $5.74 billion, surpassing the consensus estimate of$5.56 billion, although this represented a 1% decrease year-over-year due to weak performance in the Diagnostics and Life Sciences segments [1] Segment Performance - Life Sciences segment revenues were $1.68 billion, down 3.5$2.44 billion, a decline of 3.1% year-over-year, with core sales down 1.5% [3] - Biotechnology segment revenues increased to $1.61 billion, up 6$2.2 billion, while gross profit increased by 0.7% to $3.51 billion, resulting in a gross margin of 61.2$1.27 billion, with the operating margin contracting to 22.2% from 22.6% [6] Balance Sheet and Cash Flow - At the end of the first quarter, Danaher had cash and equivalents of $2 billion, down from$2.1 billion at the end of 2024, and long-term debt increased to $16 billion from$15.5 billion [7] - The company generated net cash of $1.3 billion from operating activities, down from$1.7 billion year-over-year, with capital expenditures totaling $245 million, a decrease of 15.8% [8] Future Outlook - For the second quarter, Danaher anticipates adjusted core sales from continuing operations to increase in the low single digits year-over-year, with an expected increase of approximately 3% for the full year 2025 [10]