Danaher (NYSE:DHR) shares are under pressure today after the life sciences and diagnostics major announced its results for the fourth quarter. While revenue declined by 10% year-over-year to $6.41 billion, the figure still exceeded estimates by $310 million. Further, EPS of $2.09 came in ahead of expectations by $0.18.
During the quarter, Biotechnology segment sales declined by 21%, and Diagnostics segment sales decreased by 8.5%. Rainer Blair, the President and CEO of Danaher, noted that the company is now more focused on life sciences and diagnostics following the spin-off of Veralto.
However, soft financial guidance is heavily weighing on the stock today. For Q1, Danaher sees core revenue declining by high-single digits year-over-year. Similarly, core revenue for Fiscal Year 2024 is expected to decline in the low-single-digit range.
Is DHR a Good Stock to Buy?
Overall, the Street has a Moderate Buy consensus rating on Danaher, and the average DHR price target of $242.36 implies a modest 3.6% potential upside in the stock. That’s after a nearly 26% rise in the company’s share price over the past three months.
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