Danaher (NYSE:DHR) shares are down today on a narrowed earnings outlook for the rest of the year, after the conglomerate reported modest 2nd-quarter sales and earnings growth.
The Washington-based company posted profits of $616.8 million, or 87¢ per share, on sales of $4.74 billion for the 3 months ended June 28, for sales growth of 4.0% and bottom-line gains of 2.8%. Analysts predicted EPS of 85¢.
But Danaher said it now expects 2013 adjusted EPS of $3.37 to $3.42, down from prior guidance of $3.32 to $3.47 per share. Third-quarter EPS are forecast to be 78¢-83¢.
DHR shares were trading at $67.46 each as of about 11:20 a.m. today, down 1.4%.
"Core revenue growth in the quarter was slightly better than we anticipated and, combined with our team’s outstanding execution, led to earnings outperformance, excellent margin expansion and superior cash flow. As we look to the second half of the year, we maintain a conservative macro outlook, while remaining confident in our ability to deliver solid operating margin expansion. Our earnings outperformance in the second quarter allows us to make additional high impact growth investments and to fund productivity and efficiency initiatives that we believe will position us well for the balance of 2013 and beyond," president & CEO Lawrence Culp Jr. said in prepared remarks.
