Danaher Corporation (DHR) shares plummeted 6.63% in pre-market trading on Wednesday, January 29th, following the company's fourth-quarter 2024 earnings release.
The key reason behind the stock's sharp decline was Danaher's failure to meet Wall Street's profit expectations for the quarter. The company reported adjusted earnings per share of $2.14, narrowly missing the consensus estimate of $2.16. While revenue of $6.54 billion exceeded expectations of $6.42 billion, the slight earnings miss raised concerns among investors about weak demand from the company's biotech and pharmaceutical clients for its tools and services used in drug development.
Danaher's weaker-than-expected performance in the quarter seems to have caught the market off guard, given the company's strong track record of consistently meeting or exceeding earnings estimates in recent years. The disappointing results have sparked doubts about Danaher's ability to sustain its growth momentum, at least in the near term, as it navigates ongoing challenges in the biotech industry.
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