Unpacking Q4 Earnings: Danaher (NYSE:DHR) In The Context Of Other Research Tools & Consumables Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Danaher (NYSE:DHR) and the best and worst performers in the research tools & consumables industry.
The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.
The 10 research tools & consumables stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.5% since the latest earnings results.
Danaher (NYSE:DHR)
Started as a real estate investment trust, Danaher (NYSE:DHR) designs and manufactures professional, medical, industrial, and commercial products and services.
Danaher reported revenues of $6.54 billion, up 2.1% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ organic revenue estimates.
Rainer M. Blair, President and Chief Executive Officer, stated, "We finished the year strong, with better-than-anticipated core revenue in all three of our segments. Good execution by our team also drove solid cash flow and operating margin expansion."
Danaher Total Revenue
The stock is down 17.3% since reporting and currently trades at $205.15.
Founded in 1976, Bio-Techne (NASDAQ:TECH) develops and manufactures reagents, instruments, and services for life science research, diagnostics, and biopharmaceutical production.
Bio-Techne reported revenues of $297 million, up 9% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
Bio-Techne Total Revenue
Bio-Techne pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.8% since reporting. It currently trades at $61.19.
Founded in 1904, Avantor (NYSE:AVTR) provides products and services to customers in the life sciences, advanced technologies, and applied materials industries.
Avantor reported revenues of $1.69 billion, down 2.1% year on year, falling short of analysts’ expectations by 1.6%. It was a softer quarter as it posted a miss of analysts’ organic revenue estimates.
Avantor delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 26.3% since the results and currently trades at $15.97.
Founded in 1958, Waters Corporation (NYSE:WAT) develops and manufactures high-performance liquid chromatography (HPLC), mass spectrometry (MS), and thermal analysis systems for laboratories.
Waters Corporation reported revenues of $872.7 million, up 6.5% year on year. This print beat analysts’ expectations by 1.9%. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts’ organic revenue estimates but revenue guidance for next quarter below analysts’ expectations.
The stock is down 6.5% since reporting and currently trades at $378.99.
Founded in 1960, Bruker (NASDAQ:BRKR) designs and manufactures high-performance scientific instruments and analytical solutions for molecular and material research, diagnostics, and industrial applications.
Bruker reported revenues of $979.6 million, up 14.6% year on year. This number topped analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts’ organic revenue estimates but full-year revenue guidance below analysts’ expectations.
Bruker achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is down 9% since reporting and currently trades at $47.03.
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