Danaher (NYSE:DHR)'s third quarter earnings topped Wall Street estimates on the top and bottom lines but its weak guidance saw investors retreat from the stock.
The company - which designs, manufactures and markets products and services across a range of industries including medical and industrial – reported a 10.5% year-over-year drop in revenue to $6.9 billion.
However, this topped the Street estimate of $6.61 billion.
Earnings per share of $2.02, while down from $2.56 a year ago, were ahead of estimates of $1.83.
"Revenue in the third quarter came in ahead of our expectations, with Biotechnology performing as anticipated, and higher respiratory testing revenue more than offsetting slightly softer-than-anticipated demand in Life Sciences,” commented Danaher (NYSE:DHR) CEO Rainer Blair.
“Danaher (NYSE:DHR) Business System (DBS)-driven execution also enabled us to deliver better-than-expected earnings and cash flow in what remains a challenging operating environment.”
Looking ahead to the fourth quarter, which will exclude Danaher's recently spun-off water quality portfolio Veralto, the company expects its adjusted core revenue for its base business to be down mid-single digits year-over-year.
It also projects that for the full year 2023, its base business core revenue will decline slightly year-over-year.
The company’s disappointing outlook sent its shares lower in the early afternoon on Tuesday, down 1.6% at US$200.75.
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