Zacks_Analysts' Blog : Danaher Corp. Matches Estimates - Analyst Blog

Danaher Corporation (DHR) reported fourth quarter 2010 earnings from continuing operations of 66 cents per share, excluding one-time income tax gains. This matches the Zacks Consensus Estimate.

Revenues for the quarter were $3.6 billion, 15% higher than the $3.1 billion reported for the corresponding prior-year quarter.  Core revenue growth was 13% on a year-over-year basis. Revenues were higher than the Zacks Consensus Revenue Estimate of $3.49 billion.

Gross margin was 50.9% in the quarter compared to 45.9% in the prior-year quarter.

Operating margin was 17.3% compared to 12.6% in the prior-year period.

The company generated $1.87 billion of free cash flow in FY10 and seeks to deploy cash through acquisitions.  

Cash and cash equivalents were $1.6 billion with long-term debt at $2.7 billion and shareowners’ equity at $13.7 billion.

Danaher Corporation is a diversified technology company designing, manufacturing, and marketing innovative products and services, which are typically characterized by strong brand names, proprietary technology and major market positions. From fire suppression systems and evacuation slide inflation to ejection seat subsystems and crew and passenger safety restraints, Danaher takes safety seriously and continues to enjoy a leading position in the aviation safety market. SPX Corporation (SPW) is a major competitor.

Danaher organizes its business into four operating segments: The Professional Instrumentation segment encompasses two strategic platforms: Test & Measurement and Environmental. The Medical Technologies segment encompasses three key businesses: Dental Equipment and Consumables, Life Sciences, and Acute Care Diagnostics.

The Industrial Technologies segment encompasses two strategic platforms: Motion and Product Identification and three niche businesses; Aerospace and Defense, Power Quality, and Sensors and Controls.

The Tools & Components segment encompasses one strategic platform, Mechanics Hand Tools, and four focused niche businesses Jacobs Chuck, Delta Consolidated Industries, Hennessy Industries, and Jacobs Vehicle Systems.

We currently have a Neutral recommendation on Danaher Corporation