Danaher's revenue outlook cut, biotech miss overshadow profit forecast lift
DHR•Biotechnology weakness weighs on shares
July 21 (Reuters) - Danaher DHR.N raised its annual profit forecast on Tuesday, but shares fell about 14% after the life sciences company cut its full-year core revenue growth outlook and reported weaker-than-expected revenue in its biotechnology business.
The results overshadowed improving trends in the life sciences tools market, as biotech and pharmaceutical companies increase spending on research and manufacturing following a prolonged post-pandemic slowdown.
Revenue outlook cut despite profit forecast lift
Danaher cut the year's core revenue growth range to 3% to 4% and said more than $100 million of bioprocessing revenue shifted into next year.
The company now expects full-year adjusted profit of $8.45 to $8.60 per share, up from $8.35 to $8.55 previously.
Management cites timing shifts and steadier markets
Danaher lowered the upper end of its core revenue growth outlook range for the year to 4% from 6% to reflect the impact of weaker respiratory testing revenue, while maintaining the lower end at 3%.
Guggenheim analyst Subbu Nambi said investor focus was likely to remain on bioprocessing growth and the business' outlook for the second half of despite the company's profit beat and forecast raise.
