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DHR NYSE· Danaher Corp
Earnings report Q4 2023

Danaher Corporation Reports Decline in Revenue for Latest Quarter

Segments of Revenue

Danaher Corporation, a multinational business with global operations, reported a decline in revenue for the latest quarter. Sales for the year ended December 31, 2023, amounted to $23.89 billion, compared to $26.64 billion in the previous year. This represents a decrease of approximately $2.75 billion or 10.3% year-over-year. The decline in revenue can be attributed to a decrease in both price and unit sales.

Strengths

Despite the decline in revenue, Danaher Corporation continues to demonstrate its strength as a diversified, global business. Approximately 60% of the company's sales were derived from customers outside the United States, highlighting its ability to operate in various geographic regions. Additionally, the company's range of products and services helps mitigate the impact of any one specific industry or economic factor. Danaher's management emphasizes the importance of core sales growth as a performance measure, which reflects the company's focus on long-term shareholder value.

Challenges

The decline in revenue poses a significant challenge for Danaher Corporation. The decrease in sales can be attributed to both price and unit sales, indicating potential weaknesses in market demand and pricing strategies. The company's operating costs, including selling, general, and administrative expenses, have also remained high, which may have further impacted profitability. Additionally, the ongoing impact of worldwide, regional, and industry-specific economic factors poses challenges for the company's operations.

Noteworthy

It is noteworthy that Danaher Corporation excludes the effect of currency translation from its performance measures, as currency translation is subject to volatility and can obscure underlying business trends. The company also excludes the effect of acquisitions and divestiture-related items, as these factors can vary dramatically from period to period and make comparisons of long-term performance difficult. This approach allows for a clearer assessment of the company's underlying business performance.

Summary

Danaher Corporation reported a decline in revenue for the latest quarter, with sales amounting to $23.89 billion for the year ended December 31, 2023. The decrease in revenue can be attributed to a decline in both price and unit sales. Despite this challenge, the company's strengths as a diversified, global business with a wide range of products and services help mitigate the impact of economic factors. However, the high operating costs and ongoing economic challenges pose risks to the company's financial performance. It is noteworthy that Danaher Corporation excludes the effects of currency translation and acquisitions/divestitures from its performance measures to provide a clearer assessment of its underlying business performance.

Source documents

Form 10-K  filed on Feb 21, 2024
126 pages scanned

Reference data

Company financials Q4 revenue 6.41B
Analyst estimates Q4 EPS beat by 9.15%
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