Danaher Corporation DHR is scheduled to release first-quarter 2025 results on April 22, before market open. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The Zacks Consensus Estimate for revenues is pegged at $5.56 billion, which indicates a decrease of 4.2% from the year-ago quarter’s figure. The consensus mark for earnings is pinned at $1.62 per share, which decreased 2.4% in the past 60 days. The estimate indicates a decrease of 15.6% from the figure reported in the year-ago quarter.

The company’s bottom line missed the Zacks Consensus Estimate by 1.4% in the last reported quarter. It delivered an earnings surprise of 7.4%, on average, beating estimates thrice in the trailing four quarters.

Let’s see how things have shaped up for Danaher this earnings season.

Key Factors and Estimates for Q1

Strength in the molecular diagnostics business, driven by increased respiratory and non-respiratory disease tests, is expected to have aided the Diagnostics segment. The segment’s performance is also likely to have gained from strong momentum in the clinical diagnostics businesses. However, lower demand in high-growth markets is likely to have been a spoilsport for its top-line performance. We expect the segment’s revenues to decrease 7% from the year-ago quarter to $2.35 billion.

Despite recovery, sluggish demand across pharma and biotech markets in China has been weighing on Danaher’s Instrument businesses under the Life Sciences segment. The company has been witnessing a sales decline in mass spectrometry, flow cytometry & lab automation solutions and microscopy businesses due to soft demand for equipment in major end markets.

Softness in the genomics consumables business, owing to tepid sales in the gene reading and protein product lines, is likely to have hurt the segment’s performance. We expect the segment’s revenues to decrease 6.9% from the year-ago quarter to $1.62 billion.

Recovery in the bioprocessing and consumables business, supported by robust demand for commercialized therapies, is expected to have aided the Biotechnology segment’s performance. The segment’s revenues are likely to be up 4.1% from the year-ago quarter to $1.59 billion.

Danaher acquired Abcam plc, a global supplier of protein consumables, in December 2023, which expanded the Life Sciences segment. Abcam's long track record of innovation, outstanding product quality and breadth of antibody portfolio are expected to have helped DHR solve some pertinent healthcare challenges.

The company has been witnessing escalating cost of sales, which is likely to weigh on its bottom-line results. Also, given its exposure to international markets, foreign currency headwinds are expected to have affected its profitability.

Earnings Whisper

Our proven model predicts an earnings beat for Danaher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.

Earnings ESP: Danaher has an Earnings ESP of +0.33% as the Most Accurate Estimate is pegged at $1.63 per share, higher than the Zacks Consensus Estimate of $1.62. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: DHR presently carries a Zacks Rank of 3.

Other Stocks With the Favorable Combination

Here are three other companies, which according to our model, have the right combination of elements to post an earnings beat this season.

ANI Pharmaceuticals ANIP has an Earnings ESP of +2.96% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release first-quarter 2025 results on May 9. ANI Pharmaceuticals’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 17.3%.

BioMarin Pharmaceutical BMRN has an Earnings ESP of +3.46% and a Zacks Rank of 2 at present. The company is slated to release first-quarter results on May 1.

BMRN’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 32.4%.

Cardinal Health CAH has an Earnings ESP of +0.54% and a Zacks Rank of 3 at present. The company is slated to release its third-quarter fiscal 2025 results on May 1.

CAH delivered an average earnings surprise of 9.6% in the last four quarters, while beating estimates in each of the quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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