Life sciences toolmaker Danaher (NYSE: DHR) reported strong financial results for the first quarter of 2024, surpassing analyst expectations. Despite ongoing challenges in its Biotechnology division, which experienced an 18% year-over-year decline in sales, the company’s overall revenue fell by only 3% to $5.8 billion. This was driven by growth in its Life Sciences and Diagnostics divisions, which recorded 2% and 7% year-over-year growth, respectively.
Compared to the fourth quarter of 2023, when Danaher’s overall revenue declined by 10% year-over-year, the company’s Life Sciences and Diagnostics divisions also showed significant improvement. In Q4 2023, these divisions had declined by 1% and 9% year-over-year, respectively.
Danaher’s operating profit for the quarter was $1.3 billion, slightly below the Bloomberg consensus estimate of $1.6 billion. However, the company’s net cash from operating activities reached $1.7 billion, exceeding analysts’ estimates of $1.6 billion.
Looking ahead, Danaher expects its non-GAAP core revenue to decline by mid-single digits in Q2 2024 and low-single digits for the full year compared to the same periods a year ago.
Danaher’s positive results are expected to draw attention to its competitors in the life sciences sector, including Repligen (RGEN), Bio-Rad (BIO), Thermo Fisher Scientific (TMO), Agilent (A), Avantor (AVTR), and Waters Corporation (WAT).
