The stock is gaining gains after surpassing consensus earnings and revenue estimates, ending a strong first half of the year in which the company’s stock rose 29%.
Danaher stock (ticker: DHR) is up 3.5% in recent trading to $289.63, while the
has risen 0.2%.
The industrial science supplies company announced second-quarter revenue of $7.2 billion, surpassing estimates of $6.8 billion, and reported double-digit revenue growth across all of its business segments. Danaher’s life sciences division, which produces laboratory instruments and supplies for biopharmaceutical companies, led the way with sales growth of 41.5% year-over-year, while the diagnostics division delivered sales growth of 40.5%. The environment and applied solutions division lagged behind with a year-over-year sales growth of 15.5%.
Danaher also saw operating margins increase to 27.8%, from 15.9% in the second quarter of last year. The boost in revenue and margin growth allowed the company to achieve earnings of $2.28 per share, beating consensus estimates of $2.04.
Danaher made headlines last month after announcing it would buy Aldevron for $9.6 billion. CEO Rainer Blair said the acquisition would allow Danaher to expand into the genomic medicine field. Aldevron is perhaps best known as a major supplier of
(MRNA), which provides plasmid DNA to make its Covid-19 vaccine.
In the second-quarter earnings call, Blair said he expects Danaher’s Covid-19-related revenues to continue to grow. “Given the interest we see from customers looking to address emerging variants and increase global offerings, as well as evolving vaccination guidelines worldwide, we expect sustained growth in this segment of the biopharmaceutical market for the foreseeable future,” he said.
He expects to recognize $2 billion in Covid-related vaccine and therapeutic revenue by 2021, clarifying that “the assumptions do not include any potential contribution from booster shots or an expansion of availability for populations under the age of 12.”
Looking ahead, Blair expects third-quarter revenue to grow in the mid-to-high teen range, leading to about 20% growth for the full year.
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