Danaher(US:DHR) ZACKSยท2025-04-22 17:15Core 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% year-over-year, with core sales decreasing 4% [2] - Diagnostics segment revenues totaled $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% year-over-year, with core sales rising 7% [4] Margin and Cost Analysis - Danaher's cost of sales decreased by 3.4% year-over-year to $2.2 billion, while gross profit increased by 0.7% to $3.51 billion, resulting in a gross margin of 61.2% compared to 60.2% in the previous year [5] - Operating profit decreased by 2.9% year-over-year to $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]