Danaher’s Q3 Beat & Raise Failed to Boost Expectations

Danaher Corporation (NYSE:DHR) reported its Q3 results, with the quarterly beat and raise failing to meaningfully boost expectations, following five consecutive quarters of robust operating results bolstered by solid execution amid a windfall of demand. Quarterly adjusted cash EPS came in at $2.39, beating the consensus of $2.15.

EAS (Product ID + Water Quality) had a margin shortfall from the sector-wide supply chain pressures/inflation/component shortages. Notably, management attributed the relentless DBS execution to keep the fallout from these headwinds to a minimum and suggested it has gained share during this turmoil.

The company anticipates Q4 organic revenue growth of low-to mid-teens and the Q4 base business growth of high-single-digits, and for the revenue tailwind from COVID- related revenues to be a mid-to high-single-digit percentage point contribution to growth.