Danaher (DHR) shares fall as Q4 FCF comes in sharply below consensus

Danaher (NYSE: DHR) reported Tuesday fourth-quarter sales and profit that exceeded the analyst expectations.

The company's sales reached $6.41 billion, surpassing the consensus estimate of $6.02 billion. Alongside this, Danaher reported an adjusted earnings per share (EPS) of $2.09, ahead of the consensus of $1.89.

However, the company's adjusted free cash flow, at $1.2 billion, fell short of the estimated $1.84 billion.

The stock fell 3.8% in the aftermath of the Q4 earnings report.

Looking ahead to the first quarter of 2024, Danaher anticipates a decrease in adjusted core revenue, expecting it to be down by “a high-single-digit percentage year-over-year.”

Rainer M. Blair, President and Chief Executive Officer, stated, "We delivered better-than-expected revenue in each of our segments in the fourth quarter—led by respiratory revenue at Cepheid. The combination of higher-than-expected revenues and our team's strong execution enabled us to exceed our margin and cash flow expectations in what remains a dynamic market environment.”

By Senad Karaahmetovic

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