Danaher Corporation (NYSE:DHR) shareholders are probably feeling a little disappointed, since its shares fell 9.2% to US$223 in the week after its latest annual results. It looks like the results were a bit of a negative overall. While revenues of US$24b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.5% to hit US$5.29 per share. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Danaher
Following last week’s earnings report, Danaher’s 25 analysts are forecasting 2025 revenues to be US$24.1b, approximately in line with the last 12 months. Per-share earnings are expected to increase 4.3% to US$5.65. In the lead-up to this report, the analysts had been modelling revenues of US$24.9b and earnings per share (EPS) of US$6.54 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.
Despite the cuts to forecast earnings, there was no real change to the US$271 price target, showing that the analysts don’t think the changes have a meaningful impact on its intrinsic value. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Danaher at US$310 per share, while the most bearish prices it at US$240. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Danaher’s revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2025 being well below the historical 3.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Danaher is also expected to grow slower than other industry participants.
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