Danaher Tops EPS, Misses Q1 Revenue by $40 M, Eyes Masimo Deal
Danaher posted adjusted EPS of $2.06 versus consensus $1.94 and revenue of $5.95 billion versus $5.99 billion forecast, attributing the shortfall to a lighter respiratory season at Cepheid. The company generated $1.1 billion in free cash flow, raised full-year EPS outlook to $8.35–$8.55, and plans to acquire Masimo.
1. First-Quarter Financial Results
Danaher delivered adjusted EPS of $2.06, surpassing the $1.94 consensus by $0.12, while reporting $5.95 billion in revenue, 0.7% below forecasts but up 3.5% year-over-year. The revenue miss stemmed from a lighter respiratory season at Cepheid, which offset gains in Bioprocessing and Life Sciences.
2. Guidance and Cash Flow
For Q2, Danaher expects core revenue growth in the low-single-digit percentage range and maintained full-year core revenue guidance of 3%–6%. The company boosted its adjusted EPS guidance to $8.35–$8.55, above the $8.40 consensus midpoint, and generated $1.3 billion in operating cash flow and $1.1 billion in free cash flow.
3. Acquisition Strategy
Danaher announced plans to acquire Masimo, a leading provider of pulse oximetry and patient monitoring solutions. Management highlighted opportunities to apply the Danaher Business System and global scale to enhance Masimo’s performance and accelerate growth across its medical technology portfolio.