Following my sparknotes style summarization of what happened to Danaher on X, I decided to expand on that in long form. Here are my sparknotes:
EPS raise is due to Masimo acquisition closing early (not op performance, imv).
Bioprocessing revenue impacted by “customer project timing.”
They’re reporting sales ex respiratory, so another non-GAAP metric. Diagnostics -1% 6mo ended YOY, total co is 2%. Respiratory impact was 5% so they’re releasing “Core sales growth ex-respiratory.” Seems like another game they want to play so they can show MSD core sales growth.
OCF/Net Earnings & FCF/Net Earnings conversion both fell fairly materially (1.75x to 1.50x 6mo ended YOY, 1.43x to 1.24x 6mo ended YOY, respectively).
Feels to me like core biz struggling. Need to digest a bit more.
TLDR, growth rekt.
Here is a link to that post:
Some brief financial highlights.
Price: $178.00
Shares out: 707.77mm
Market Cap: $142.3B
Cash: $5.7B
Debt: $19.68B
Enterprise Value: $156B
Below are my thoughts.