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Danaher Gains From Strength in the Diagnostics Unit Amid Headwinds
DHRDanaher(DHR) ZACKS·2025-04-04 17:00

Core Business Performance - Danaher Corporation (DHR) is experiencing strong momentum in its clinical diagnostics business, particularly from the Leica Biosystems and Beckman Colter Diagnostics units, with positive responses to new products like Aperio GT 450 DX and Access NT ProBNP, both of which received FDA 510K clearance [1] - The Diagnostics segment's core revenues increased by 3% year over year in 2024, with expectations for 2025 to remain flat or increase in low-single-digits [2] - The acquisition of Abcam plc for approximately 5.7billioninDecember2023hasexpandedDanahersLifeSciencessegment,contributingtoa25.7 billion in December 2023 has expanded Danaher's Life Sciences segment, contributing to a 2% revenue boost in 2024 [3] Shareholder Returns - Danaher is committed to rewarding shareholders, having paid out dividends of 768 million in 2024 and 821millionin2023,withan18.5821 million in 2023, with an 18.5% dividend hike to 32 cents per share announced in February 2025 [4] Segment Challenges - The Life Sciences segment faced a 2% decline in core revenues year over year in 2024 due to sluggish demand in pharma and biotech markets in China, impacting sales in mass spectrometry, flow cytometry, lab automation, and microscopy [5] - The Biotechnology segment also showed weakness, with core revenues declining by 4.5% year over year in 2024 due to sluggish demand in discovery and medical businesses [6] Financial Concerns - Danaher reported a long-term debt of 15.5 billion at the end of Q4 2024, with current liabilities of 6.8billionexceedingcashequivalentsof6.8 billion exceeding cash equivalents of 2.1 billion, and high interest expenses of $278 million in 2024 [7] Stock Performance - Over the past year, Danaher's stock has declined by 19%, compared to a 16% decrease in the industry [8]