(Reuters) – Danaher on Wednesday missed Wall Street estimates for fourth-quarter profit due to soft demand for tools and services used in drug development by its biotech and pharmaceutical clients.
The company also forecast first-quarter 2025 adjusted core revenue to “decline low-single digits year-over-year”, sending its shares down 5.1% in premarket trading.
In October, the life sciences firm reported weak orders and activity levels, especially for equipment in China, as customers continue to conserve capital, and noted that spending from smaller customers also has not improved.
Smaller clients including early-stage biotech firms remain cautious with investments even as recent rate cuts are expected to improve their funding environment.
On an adjusted basis, Danaher reported a profit of $2.14 per share for the quarter, missing analysts’ estimates of $2.16 per share, according to data compiled by LSEG.
The Washington, D.C.-based company reported sales of $6.54 billion for the quarter, compared with analysts’ estimates of $6.43 billion.
For the full year 2025, the company expects adjusted core revenue to increase about 3% year-over-year.
The company’s diagnostics business, which makes COVID-19 and genetics testing kits, posted sales of $2.64 billion in the quarter, compared with analysts’ estimates of $2.55 billion.
Its life sciences unit, which provides reagents and lab equipment used in the discovery of new drugs and vaccines, posted sales of $2.03 billion, compared with estimates of $1.96 billion.
(Reporting by Kamal Choudhury and Sneha S K in Bengaluru; Editing by Vijay Kishore)
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