A healthcare worker prepares a shot of Covid-19 vaccine in the Philippines.
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Danaher stock is gaining after it surpassed consensus earnings and revenue estimates, capping off a strong first half of the year during which the company’s stock rose 29%.
Danaher stock (ticker: DHR) is up 3.5%, at $289.63, in recent trading, while the S&P 500 is up 0.2%.
The industrial scientific-supplies company announced second-quarter revenue of $7.2 billion, topping estimates of $6.8 billion, and reported double-digit revenue growth in all of its business segments. Danaher’s life-sciences division, which produces lab tools and supplies for biopharmaceutical companies, led the way, reporting revenue growth of 41.5% year over year, with the diagnostics division growing revenue by 40.5%. The environmental and applied-solutions division trailed behind, posting year-over-year revenue growth of 15.5%.
Danaher also saw operating margins expand to 27.8% from 15.9% in last year’s second quarter. The boost in revenue and margin growth enabled the company to post earnings of $2.28 per share, beating consensus estimates of $2.04.
Danaher made headlines last month after announcing that it would buy Aldevron for $9.6 billion. CEO Rainer Blair said the acquisition would allow Danaher to expand into the field of genomic medicine. Aldevron is perhaps most notable for being a key supplier to Moderna (MRNA), providing plasmid DNA to make its Covid-19 vaccine.
In the second-quarter earnings call, Blair said he expects Danaher’s Covid-19-related revenue to continue to grow. “Given the interest we’re seeing from customers looking to address emerging variants and increase global supply as well as evolving vaccination guidelines globally, we expect to see durable growth in this segment of the biopharma market for the foreseeable future,” he said.
He expects to recognize $2 billion in Covid-related vaccine and therapeutic revenue in 2021, clarifying that “the assumptions do not include potential contribution from booster shots or an expansion of availability to populations under 12 years old.”
In terms of guidance, Blair expects third-quarter revenue to grow in the mid- to high-teen range, leading to growth of around 20% for the full year.
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