Danaher’s reduced biotech sales growth outlook offsets higher full-year EPS guidance, weighing on shares despite earnings beat.
Danaher (NYSE: DHR) shares fell 12.1% this week after second-quarter earnings, despite the company raising full-year EPS guidance to $8.45-$8.60 from $8.35-$8.55. The increase includes $0.07-$0.08 from the early acquisition of Masimo, masking weaker core performance.
The company lowered biotechnology sales growth expectations, citing delayed consumables shipments to commercial drug manufacturers. While overall sales growth remains largely unchanged, the shift could pressure profit margins in its highest-margin segment.
Shares recovered partially after the initial sell-off but remain under pressure as investors weigh the mixed outlook.