Danaher's Q4 2024 Revenue Boosted by Life Sciences and Biotech Growth
Washington, D.C., Thursday, 30 January 2025.
Danaher Corporation reports a 2% rise in 4Q revenue to $6.54 billion, fueled by significant gains in life sciences and biotechnology, despite forecasting a slight revenue decline for next quarter.
Strong Performance Across Key Segments
Danaher Corporation (NYSE: DHR) demonstrated robust financial performance in the fourth quarter of 2024, with total sales reaching $6.54 billion [1][2]. The biotechnology segment led the growth with a 6.3% increase, while the life sciences division posted a 5.3% rise [1]. The company’s core revenue, which accounts for currency translation, acquisitions, and divestitures, grew by 1% [1], exceeding analyst expectations of $6.44 billion [1].
Earnings and Profitability Metrics
The manufacturing conglomerate reported net earnings of $1.09 billion, or $1.49 per share, compared to $1.08 billion, or $1.45 per share, in the same quarter of the previous year [1]. Adjusted earnings were $2.14 per share [1][2]. Operating cash flow showed significant strength at $2.0 billion, with non-GAAP free cash flow reaching $1.5 billion [2].
Future Outlook and Strategic Position
Looking ahead to 2025, Danaher has provided a mixed outlook. The company forecasts a low-single-digit decline in core revenue for the first quarter of 2025, but projects approximately 3% growth for the full year [2]. CEO Rainer M. Blair expressed confidence in the company’s position, stating that ‘Danaher is better positioned than at any point in our 40-year history’ [2]. This optimism comes as the company continues to strengthen its presence in life sciences, as evidenced by their participation in upcoming industry events such as SLAS 2025 [3].
Market Response and Analyst Perspectives
The financial community has shown varied responses to Danaher’s performance, with several major analysts adjusting their price targets. Notable changes include BofA Securities reducing their target to $265 from $290, while maintaining a Buy rating, and Barclays adjusting their target to $240 from $275 [5]. Despite these adjustments, the company maintains an average rating of overweight among analysts [5], reflecting continued confidence in Danaher’s long-term growth prospects.