Shares of global healthcare major Danaher (NYSE:DHR) are ticking higher today after its third-quarter EPS of $2.02 landed ahead of estimates by $0.23. Although revenue declined by 10.5% year-over-year to $6.9 billion, the figure still fared better than expectations by nearly $300 million.
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In the third quarter, Danaher’s Biotechnology segment continued to perform well, with increased respiratory testing revenue offsetting tepid demand in its Life Sciences vertical. Despite an 11.5% decline in its non-GAAP core revenue, the company generated $1.7 billion in operating cash flow during the quarter.
In the face of a challenging operating environment, Danaher expects core revenue to decline in the mid-single-digits year-over-year during the fourth quarter. For the full Fiscal year 2023, it anticipates a slight year-over-year decline in its core revenue.
Is DHR a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on Danaher. The average DHR price target of $263 implies a significant 28.9% potential upside. That’s after a nearly 8.5% slide in the share price over the past year.
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