Danaher Reports Third Quarter 2024 Results
Danaher (NYSE: DHR) reported its third quarter 2024 results, with net earnings of $818 million, or $1.12 per diluted common share. Non-GAAP adjusted diluted net earnings per common share were $1.71. Revenues increased 3.0% year-over-year to $5.8 billion, while non-GAAP core revenue increased 0.5%. Operating cash flow was $1.5 billion, and non-GAAP free cash flow was $1.2 billion.
CEO Rainer M. Blair highlighted strong performance, particularly in the bioprocessing business, and noted Cepheid's market share gains in molecular testing. For Q4 2024, Danaher anticipates non-GAAP core revenue to decline low-single digits year-over-year. The full year 2024 outlook remains unchanged, with non-GAAP core revenue expected to be down low-single digits year-over-year.
Danaher (NYSE: DHR) ha riportato i suoi risultati del terzo trimestre 2024, con utili netti di 818 milioni di dollari, pari a 1,12 dollari per azione comune diluita. Gli utili netti diluiti rettificati secondo i principi contabili non GAAP per azione comune erano 1,71 dollari. I ricavi sono aumentati del 3,0% rispetto all'anno precedente, raggiungendo 5,8 miliardi di dollari, mentre il ricavo core non GAAP è aumentato del 0,5%. Il flusso di cassa operativo è stato di 1,5 miliardi di dollari, mentre il flusso di cassa libero non GAAP è stato di 1,2 miliardi di dollari.
Il CEO Rainer M. Blair ha evidenziato una forte performance, in particolare nel settore della bioprocessing, e ha notato i guadagni di quota di mercato di Cepheid nei test molecolari. Per il quarto trimestre 2024, Danaher prevede che il ricavo core non GAAP diminuisca di pochi punti percentuali rispetto all'anno precedente. Le prospettive per l'intero anno 2024 rimangono invariate, con il ricavo core non GAAP previsto in calo di pochi punti percentuali rispetto all'anno precedente.
Danaher (NYSE: DHR) reportó sus resultados del tercer trimestre de 2024, con ganancias netas de 818 millones de dólares, o 1,12 dólares por acción común diluida. Las ganancias netas diluidas ajustadas según principios contables no GAAP por acción común fueron 1,71 dólares. Los ingresos aumentaron un 3,0% interanual a 5,8 mil millones de dólares, mientras que los ingresos core no GAAP aumentaron un 0,5%. El flujo de caja operativo fue de 1,5 mil millones de dólares, y el flujo de caja libre no GAAP fue de 1,2 mil millones de dólares.
El CEO Rainer M. Blair destacó el sólido desempeño, particularmente en el negocio de bioprocesamiento, y señaló las ganancias de cuota de mercado de Cepheid en pruebas moleculares. Para el cuarto trimestre de 2024, Danaher anticipa que los ingresos core no GAAP disminuyan un poco en comparación con el año anterior. Las perspectivas para todo el año 2024 permanecen sin cambios, con los ingresos core no GAAP previstos en baja de pocos puntos porcentuales interanuales.
다나허(Danaher) (NYSE: DHR)는 2024년 3분기 실적을 발표했으며, 순이익은 8억 1천 8백만 달러, 즉 희석된 보통주당 1.12달러라고 밝혔습니다. 비GAAP 기준 희석된 보통주당 순이익은 1.71달러로 나타났습니다. 매출은 전년 대비 3.0% 증가한 58억 달러에 달했으며, 비GAAP 핵심 매출은 0.5% 증가했습니다. 운영 현금 흐름은 15억 달러였으며, 비GAAP 자유 현금 흐름은 12억 달러였습니다.
CEO 라이너 M. 블레어(Rainer M. Blair)는 특히 생물공정 사업에서의 강력한 성과를 강조하고, 세펜(Cepheid)의 분자 검사에서의 시장 점유율 증가를 언급했습니다. 2024년 4분기에는 비GAAP 핵심 매출이 전년 대비 소폭 감소할 것으로 예상하고 있습니다. 2024년 전체 연간 전망은 변경되지 않으며, 비GAAP 핵심 매출이 전년 대비 소폭 감소할 것으로 예상하고 있습니다.
Danaher (NYSE: DHR) a publié ses résultats du troisième trimestre 2024, avec un bénéfice net de 818 millions de dollars, soit 1,12 dollar par action ordinaire diluée. Le bénéfice net dilué ajusté selon les normes non GAAP par action ordinaire était de 1,71 dollar. Les revenus ont augmenté de 3,0 % par rapport à l'année précédente, atteignant 5,8 milliards de dollars, tandis que les revenus core non GAAP ont progressé de 0,5 %. Le flux de trésorerie d'exploitation était de 1,5 milliard de dollars, et le flux de trésorerie libre non GAAP était de 1,2 milliard de dollars.
Le PDG Rainer M. Blair a souligné la forte performance, en particulier dans le secteur de la bioprocédure, et a noté les gains de parts de marché de Cepheid dans les tests moléculaires. Pour le quatrième trimestre 2024, Danaher anticipe une légère baisse du revenu core non GAAP par rapport à l'année précédente. Les prévisions pour l'ensemble de l'année 2024 restent inchangées, avec un revenu core non GAAP attendu en baisse de quelques points de pourcentage par rapport à l'année précédente.
Danaher (NYSE: DHR) hat seine Ergebnisse des dritten Quartals 2024 bekanntgegeben, mit einem Nettogewinn von 818 Millionen Dollar oder 1,12 Dollar pro verwässerter Stammaktie. Die nach Non-GAAP angepassten, verwässerten Nettogewinne pro Stammaktie lagen bei 1,71 Dollar. Der Umsatz stieg im Vergleich zum Vorjahr um 3,0% auf 5,8 Milliarden Dollar, während der Non-GAAP-Kernumsatz um 0,5% zunahm. Der operative Cashflow betrug 1,5 Milliarden Dollar und der Non-GAAP-Freie Cashflow betrug 1,2 Milliarden Dollar.
CEO Rainer M. Blair hob die starke Leistung, insbesondere im Bereich Bioprozessierung, hervor und stellte die Marktanteilsgewinne von Cepheid im Bereich der molekularen Tests fest. Für das 4. Quartal 2024 rechnet Danaher mit einem Rückgang des Non-GAAP-Kernumsatzes um niedrige einstellige Prozentsätze im Jahresvergleich. Der Ausblick für das Gesamtjahr 2024 bleibt unverändert, mit einem erwarteten Rückgang des Non-GAAP-Kernumsatzes um niedrige einstellige Prozentsätze im Jahresvergleich.
- Revenues increased 3.0% year-over-year to $5.8 billion
- Non-GAAP core revenue increased 0.5%
- Strong performance in bioprocessing business
- Cepheid gained market share in molecular testing
- Anticipated low-single digit decline in non-GAAP core revenue for Q4 2024
- Full year 2024 non-GAAP core revenue expected to be down low-single digits year-over-year
Insights
Danaher's Q3 2024 results show resilience in a challenging environment. Revenues increased 3.0% year-over-year to
The company's strong cash flow generation is noteworthy, with operating cash flow at
However, the outlook suggests caution. Q4 2024 non-GAAP core revenue is expected to decline low-single digits year-over-year, with the same projection for full-year 2024. This indicates potential headwinds in the near term, possibly due to macroeconomic factors or industry-specific challenges.
Investors should closely monitor the bioprocessing business and Cepheid's performance in molecular testing, as these areas were highlighted as strengths. The company's focus on DBS-driven execution and its leading portfolio position it well for long-term value creation, despite short-term pressures.
Danaher's Q3 performance reveals interesting market dynamics. The
However, the projected low-single-digit decline in non-GAAP core revenue for Q4 and full-year 2024 points to broader market headwinds. This could reflect a slowdown in healthcare spending, reduced demand for COVID-19 related products, or increased competition in key segments.
The company's emphasis on its DBS (Danaher Business System) execution highlights its focus on operational efficiency, which could be important in maintaining profitability during a potential market downturn. Long-term investors should consider Danaher's track record of adapting to market changes and its strategic focus on improving human health, which aligns with enduring global trends in healthcare and life sciences.
Key Third Quarter 2024 Results
- Net earnings were
$818 million $1.12 $1.71 - Revenues increased
3.0% year-over-year to$5.8 billion 0.5% . - Operating cash flow was
$1.5 billion $1.2 billion
Rainer M. Blair, President and Chief Executive Officer, stated, "Our team delivered strong third quarter results, including better-than-expected revenue growth. We were especially pleased with the continued positive momentum in our bioprocessing business and believe Cepheid gained market share in molecular testing again this quarter."
Blair continued, "Looking ahead, we believe the combination of our leading portfolio and DBS-driven execution differentiates Danaher and provides a strong foundation for sustainable long-term value creation while helping to meaningfully improve human health."
Fourth Quarter and Full Year 2024 Outlook
The Company provides forecasted sales only on a non-GAAP core revenue basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines.
For the fourth quarter 2024, the Company anticipates that non-GAAP core revenue will decline low-single digits year-over-year. For full year 2024, the Company continues to expect that non-GAAP core revenue will be down low-single digits year-over-year.
Conference Call and Webcast Information
Danaher will discuss its third quarter results and financial guidance for the fourth quarter and full year 2024 during its quarterly investor conference call today starting at 8:00 a.m. ET. The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations" and additional related materials will be posted to the same section of Danaher's website. A replay of the webcast will be available in the same section of Danaher's website shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.
The conference call can be accessed by dialing 800-245-3047 within the
ABOUT DANAHER
Danaher is a leading global life sciences and diagnostics innovator, committed to accelerating the power of science and technology to improve human health. Our businesses partner closely with customers to solve many of the most important health challenges impacting patients around the world. Danaher's advanced science and technology - and proven ability to innovate - help enable faster, more accurate diagnoses and help reduce the time and cost needed to sustainably discover, develop and deliver life-changing therapies. Focused on scientific excellence, innovation and continuous improvement, our approximately 63,000 associates worldwide help ensure that Danaher is improving quality of life for billions of people today, while setting the foundation for a healthier, more sustainable tomorrow. Explore more at www.danaher.com.
NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS
In addition to the financial measures prepared in accordance with
In addition, this earnings release, our Form 10-Q, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Danaher's website (www.danaher.com) under the subheading "Quarterly Earnings."
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical, including the statements regarding the anticipated financial results for the fourth quarter and full year 2024, the Company's positioning for sustainable long-term value creation and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things: unanticipated, further declines in demand for our COVID-19 related products, the impact of global health crises, the impact of our debt obligations on our operations and liquidity, deterioration of or instability in the global economy, the markets we serve and the financial markets, uncertainties with respect to the development, deployment, and use of artificial intelligence in our business and products, uncertainties relating to national laws or policies, including laws or policies to protect or promote domestic interests and/or address foreign competition, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including rules relating to off-label marketing and other regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, our ability to effectively address cost reductions and other changes in the health care industry, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated growth, synergies and other benefits of such acquisitions, contingent liabilities and other risks relating to acquisitions, investments, strategic relationships and divestitures (including tax-related and other contingent liabilities relating to past and future IPOs, split-offs or spin-offs), security breaches or other disruptions of our information technology systems or violations of data privacy laws, the impact of our restructuring activities on our ability to grow, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of
DANAHER CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS | ||||||||
($ and shares in millions, except per share amounts) | ||||||||
(unaudited) | ||||||||
Three-Month Period Ended | Nine-Month Period Ended | |||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | |||||
Sales | $ 5,798 | $ 5,624 | $ 17,337 | $ 17,485 | ||||
Cost of sales | (2,397) | (2,349) | (7,021) | (7,230) | ||||
Gross profit | 3,401 | 3,275 | 10,316 | 10,255 | ||||
Operating costs: | ||||||||
Selling, general and administrative | (2,060) | (1,728) | (5,736) | (5,294) | ||||
Research and development | (383) | (362) | (1,142) | (1,096) | ||||
Operating profit | 958 | 1,185 | 3,438 | 3,865 | ||||
Nonoperating income (expense): | ||||||||
Other income (expense), net | 102 | (47) | 7 | (38) | ||||
Interest expense | (87) | (70) | (217) | (201) | ||||
Interest income | 4 | 79 | 103 | 186 | ||||
Earnings before income taxes | 977 | 1,147 | 3,331 | 3,812 | ||||
Income taxes | (159) | (207) | (518) | (712) | ||||
Net earnings from continuing | 818 | 940 | 2,813 | 3,100 | ||||
Earnings from discontinued | — | 189 | — | 585 | ||||
Net earnings | 818 | 1,129 | 2,813 | 3,685 | ||||
Mandatory convertible preferred stock | — | — | — | (21) | ||||
Net earnings attributable to common | $ 818 | $ 1,129 | $ 2,813 | $ 3,664 | ||||
Net earnings per common share from | ||||||||
Basic | $ 1.13 | $ 1.27 | $ 3.83 | $ 4.19 | ||||
Diluted | $ 1.12 | $ 1.26 | $ 3.80 | (a) | $ 4.15 | |||
Net earnings per common share from | ||||||||
Basic | $ — | $ 0.26 | $ — | $ 0.80 | ||||
Diluted | $ — | $ 0.25 | $ — | $ 0.79 | (a) | |||
Net earnings per common share: | ||||||||
Basic | $ 1.13 | $ 1.53 | $ 3.83 | $ 4.98 | (a)(b) | |||
Diluted | $ 1.12 | $ 1.51 | $ 3.80 | (a) | $ 4.94 | |||
Average common stock and common | ||||||||
Basic | 723.0 | 739.4 | 733.8 | 735.4 | ||||
Diluted | 729.4 | 745.9 | 740.1 | 742.1 | ||||
(a) | Net earnings per common share amounts for the relevant three-month periods do not add to the nine-month period amount due to rounding. |
(b) | Net earnings per common share amounts do not add due to rounding. |
This information is presented for reference only. A complete copy of Danaher's Form 10-Q financial statements is available on the Company's website (www.danaher.com).
DANAHER CORPORATION | |||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||
Diluted Net Earnings Per Common Share and Adjusted Diluted Net Earnings Per Common Share 1 | |||||||
Three-Month Period Ended | Nine-Month Period Ended | ||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Diluted Net Earnings Per Common Share | $ 1.12 | $ 1.26 | $ 3.80 | $ 4.15 | |||
Amortization of acquisition-related | 0.57 | 0.49 | 1.65 | 1.49 | |||
Fair value net (gains) losses on | (0.14) | 0.06 | (0.01) | 0.06 | |||
Impairments C | 0.30 | — | 0.30 | 0.06 | |||
Acquisition-related items D | — | — | 0.03 | — | |||
Tax effect of the above adjustments E | (0.14) | (0.10) | (0.37) | (0.30) | |||
Discrete tax adjustments F | — | 0.01 | (0.06) | 0.03 | |||
Rounding | — | — | — | 0.01 | |||
Adjusted Diluted Net Earnings Per | $ 1.71 | $ 1.72 | $ 5.34 | $ 5.50 | |||
1 | For the nine-month period ended September 29, 2023, each of the per share amounts above have been calculated assuming the Mandatory Convertible Preferred Stock ("MCPS") had been converted into shares of common stock prior to their conversion on April 17, 2023. Net earnings from continuing operations per diluted common share for the relevant three-month periods may not add to the year-to-date amounts due to rounding. |
Notes to Reconciliation of GAAP to Non-GAAP Financial Measures | |
A | Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above): |
Three-Month Period Ended | Nine-Month Period Ended | ||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Pretax | $ 414 | $ 367 | $ 1,223 | $ 1,111 | |||
After-tax | 341 | 301 | 1,008 | 909 | |||
B | Net (gains) losses on the Company's equity and limited partnership investments recorded in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the fair value net (gains) losses on investments line above): |
Three-Month Period Ended | Nine-Month Period Ended | ||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Pretax | $ (103) | $ 48 | $ (7) | $ 43 | |||
After-tax | (82) | 36 | (9) | 32 | |||
C | Impairment charges related to a trade name in the Life Sciences segment recorded in the three and nine-month periods ended September 27, 2024 ( |
D | Costs incurred for the fair value adjustment to inventory related to the acquisition of Abcam plc for the nine-month period ended September 27, 2024 ( |
E | This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table. In addition, the footnotes above indicate the after-tax amount of each individual adjustment item. Danaher estimates the tax effect of each adjustment item by applying Danaher's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. The MCPS dividends are not tax deductible and therefore the tax effect of the adjustments does not include any tax impact of the MCPS dividends. |
F | There were no discrete tax adjustments and other tax-related adjustments for the three-month period ended September 27, 2024 as excess tax benefits from stock-based compensation were offset by other discrete tax charges. Discrete tax adjustments and other tax-related adjustments for the nine-month period ended September 27, 2024, include net discrete tax benefits of |
Average and Adjusted Average Common Stock and Common Equivalent Diluted Shares Outstanding | |||||||
(shares in millions) | |||||||
Three-Month Period Ended | Nine-Month Period Ended | ||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Average common stock and common | 729.4 | 745.9 | 740.1 | 742.1 | |||
Converted shares 3 | — | — | — | 3.4 | |||
Adjusted average common stock and | 729.4 | 745.9 | 740.1 | 745.5 | |||
2 | The impact of the MCPS calculated under the if-converted method was anti-dilutive for the nine-month period ended September 29, 2023, and as such, 3.4 million weighted average shares underlying the MCPS were excluded from the calculation of diluted EPS and the related MCPS dividends of |
3 | The number of converted shares assumes the conversion of all MCPS and issuance of the underlying shares applying the "if-converted" method of accounting and using the actual conversion rates as of September 29, 2023. |
Sales Growth (Decline) by Segment and Core Sales Growth (Decline) by Segment | |||||||
% Change Three-Month Period Ended September 27, 2024 vs. Comparable | |||||||
Segments | |||||||
Total Company | Biotechnology | Life Sciences | Diagnostics | ||||
Total sales growth (decline) (GAAP) | 3.0 % | (0.5) % | 4.5 % | 5.0 % | |||
Impact of: | |||||||
Acquisitions | (2.5) % | — % | (7.0) % | — % | |||
Currency exchange rates | — % | 0.5 % | 0.5 % | — % | |||
Core sales growth (decline) (non-GAAP) | 0.5 % | — % | (2.0) % | 5.0 % | |||
% Change Nine-Month Period Ended September 27, 2024 vs. Comparable | |||||||
Segments | |||||||
Total Company | Biotechnology | Life Sciences | Diagnostics | ||||
Total sales (decline) growth (GAAP) | (1.0) % | (9.5) % | 1.5 % | 4.0 % | |||
Impact of: | |||||||
Acquisitions | (2.0) % | — % | (6.5) % | — % | |||
Currency exchange rates | 1.0 % | 1.0 % | 1.5 % | 1.0 % | |||
Core sales (decline) growth (non-GAAP) | (2.0) % | (8.5) % | (3.5) % | 5.0 % | |||
Forecasted Core Sales Decline | |||
% Change Three-Month | % Change Year Ending | ||
Core sales decline (non-GAAP) | -Low-single digit | -Low-single digit | |
Cash Flow from Continuing Operations and Free Cash Flow from Continuing Operations | |||||
($ in millions) | |||||
Three-Month Period Ended | Year-over- | ||||
September 27, 2024 | September 29, 2023 | ||||
Total Cash Flow from Continuing Operations: | |||||
Net cash provided by operating activities from continuing operations | $ 1,513 | $ 1,447 | |||
Total cash used in investing activities from continuing operations | $ (606) | $ (315) | |||
Total cash (used in) provided by financing activities from continuing | $ (845) | $ 2,443 | |||
Free Cash Flow from Continuing Operations: | |||||
Net cash provided by operating activities from continuing operations | $ 1,513 | $ 1,447 | ~ 4.5 % | ||
Less: payments for additions to property, plant & equipment (capital | (298) | (354) | |||
Plus: proceeds from sales of property, plant & equipment (capital | 11 | 4 | |||
Free cash flow from continuing operations (non-GAAP) | $ 1,226 | $ 1,097 | ~ 12.0 % | ||
We define free cash flow from continuing operations as operating cash flows from continuing operations, less payments for additions to property, plant and equipment from continuing operations ("capital expenditures") plus the proceeds from sales of plant, property and equipment from continuing operations ("capital disposals").
Statement Regarding Non-GAAP Measures
Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Danaher Corporation's ("Danaher" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors:
- with respect to Adjusted Diluted Net Earnings Per Common Share, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers;
- with respect to core sales, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and
- with respect to free cash flow from continuing operations (the "FCF Measure"), understand Danaher's ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company's debt service requirements and other non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures).
Management uses the non-GAAP measures referenced above to measure the Company's operating and financial performance, and uses core sales and non-GAAP measures similar to Adjusted Diluted Net Earnings Per Common Share from Continuing Operations and the FCF Measure in the Company's executive compensation program.
The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:
- With respect to Adjusted Diluted Net Earnings Per Common Share:
- Amortization of Intangible Assets: We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
- Restructuring Charges: We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Danaher Business System. Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Danaher's ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time.
- Other Adjustments: With respect to the other items excluded from Adjusted Diluted Net Earnings Per Common Share from Continuing Operations, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Danaher's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
- With respect to adjusted average common stock and common equivalent shares outstanding, Danaher's MCPS mandatorily converted into Danaher common stock on the mandatory conversion date of April 17, 2023 (unless converted or redeemed earlier in accordance with the terms of the applicable certificate of designations). With respect to the calculation of Adjusted Diluted Net Earnings Per Common Share from Continuing Operations, we apply the "if converted" method of share dilution to the MCPS in all applicable periods irrespective of whether such preferred shares would be dilutive or anti-dilutive in the period. We believe this presentation provides useful information to investors by helping them understand the net impact on Danaher's earnings per share-related measures irrespective of the period.
- With respect to core sales, (1) we exclude the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.
- With respect to the FCF Measure, we deduct payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements.
The Company provides forecasted sales only on a non-GAAP core revenue basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines.
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SOURCE Danaher Corporation
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What were Danaher's (DHR) Q3 2024 earnings per share?
How much did Danaher's (DHR) revenue grow in Q3 2024?
What is Danaher's (DHR) revenue outlook for Q4 and full year 2024?
Which areas of Danaher's (DHR) business performed well in Q3 2024?
