(Reuters) – Danaher on Tuesday beat Wall Street estimates for third-quarter profit on strong demand for its diagnostics and bioprocessing businesses, alongside growth in its molecular testing unit.
Shares of the life sciences company rose 2.5% to $278 before the bell.
However, the Washington, D.C.-based company expects a low-single-digit decline in its fourth-quarter adjusted revenue year-over-year.
High interest rates have forced biotech companies, clients of life science firms, to reduce spending since 2023, but recent interest rate cuts give some analysts hope for a near-term turnaround, as borrowing costs might ease.
On October 17, the company’s German peer Sartorius posted better-than-expected results for nine months on the rise of bioprocessing orders.
The company’s diagnostics business, which makes COVID-19 and genetics testing kits, posted sales of $2.36 billion, topping estimates of $2.19 billion.
Its life sciences unit, which provides reagents and lab equipment used in the discovery of new drugs and vaccines, posted sales of $1.78 billion, compared with estimates of $1.76 billion.
Danaher said it saw strength in its molecular testing unit Cepheid which gained market share this quarter.
Danaher reported third-quarter revenue of $5.8 billion, beating analysts’ estimates of $5.60 billion.
On an adjusted basis, Danaher reported a profit of $1.71 per share for the third quarter, beating analysts’ average estimates of $1.57 per share.
(Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Vijay Kishore)
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