April 21 (Reuters) – Life sciences firm Danaher topped first-quarter profit expectations on Tuesday, fueled by strong demand for its bioprocessing tools used in drug manufacturing, lifting shares 2% in premarket trading.
The results point to improving market conditions for life sciences companies as pharmaceutical companies ramp up spending on drug discovery and development.
The Washington, D.C.-based company, which makes tools and technologies used by pharmaceutical companies to develop and manufacture drugs, reported adjusted earnings of $2.06 per share for the quarter ended March 27, topping analysts’ average estimate of $1.94, according to LSEG data.
CEO Rainer Blair said the company’s steady recovery was driven by strength in its bioprocessing unit and better-than-expected performance in the life sciences segment, despite a weaker seasonal demand for respiratory tests.
Total quarterly revenue came in at $5.95 billion, slightly below Wall Street’s estimates of $6 billion.
Danaher’s biotechnology unit, which includes the Cytiva bioprocessing business that provides equipment and materials to drugmakers, was the standout performer, with core sales – excluding currency fluctuations – up 7% for the quarter.
Core sales in Danaher’s life sciences segment, which supplies lab equipment for drug discovery, rose 0.5% in the period, while sales in its diagnostics unit, which makes COVID-19 and other medical testing kits, fell 4%.
“This was a good print from DHR,” said Evercore ISI analyst Vijay Kumar.
Danaher slightly raised its full-year adjusted earnings forecast to $8.35 to $8.55 per share, from $8.35 to $8.50 per share previously. Analysts had, on average, expected $8.40 per share.
The company was also upbeat about its $9.9 billion acquisition of Masimo Corporation, announced in February. Blair said Danaher sees “clear opportunities” to enhance Masimo’s performance through its business systems and global scale.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Diti Pujara)
Comments