Diversified machinery maker Danaher Corp. (DHR) Thursday reported a higher first-quarter profit, reflecting a gain from sale of joint venture. However, adjusted earnings and revenues missed analysts' expectations. The company also reaffirmed its adjusted net earnings per share guidance for the full year.
In the first quarter, the company's net earnings increased to $691.9 million or $0.98 per share from $612.9 million or $0.86 per share in the previous year.
For the quarter, the company recorded a gain from sale of Apex Tool Group LLC joint venture totaling $229.8 million. Excluding the gain and discrete tax benefits totaling $0.23 per share, adjusted earnings per share from continuing operations for the recent quarter were $0.75 per share. In the prior-year quarter, earnings from continuing operations were $0.73 per share.
On average, 23 analysts polled by Thomson Reuters expected the company to report profit of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter grew 3 percent to $4.44 billion. Core revenues increased 1 percent from last year. Analysts expected revenue of $4.50 billion for the quarter.
Lawrence Culp, Jr., president and chief executive officer said, "Our modest expectations for global growth heading into this year have, so far, played out largely as anticipated. The Danaher Business System continues to help us drive share gains, margins and cash flow in this low growth environment."
Looking ahead to the second-quarter, the company expects GAAP net earnings per share to be in the range of $0.80 to $0.85. Analysts expect the company to report earnings per share of $0.87 for the quarter.
Danaher also reaffirmed its adjusted net earnings per share guidance of $3.32 to $3.47 for the full year. Analysts are currently looking for earnings of $3.45 per share for the year.
DHR is currently trading at $57.93, down $1.81 or 3.03 percent, on a volume of 2.42 million shares.
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