NEW YORK (GenomeWeb) – Danaher today reported a 3 percent year-over-year increase in total sales for the fourth quarter, as it beat the consensus analysts' estimate on the top and bottom lines.
For the three months ended Dec. 31, 2014, the company recorded $5.42 billion in total sales, compared to $5.27 billion from the year-ago period and edged out the average analysts' estimate of $5.39 billion. Core revenue growth on a non-GAAP basis was up 4 percent year over year and acquisitions added 2.5 percent to sales, Danaher said, while the impact of currency translation reduced sales growth by 3.5 percent.
Life Sciences & Diagnostics, the largest of Danaher's segments, had $1.99 billion in sales, compared to $1.94 billion in Q4 2013. On a conference call today, Danaher President and CEO Thomas Joyce said that revenues in the segment grew 3 percent year over year, while core revenues grew 4 percent.
In the diagnostics business, platform sales were up in the mid-single digits, he said, "with healthy demand in both the high-growth and developed markets." Beckman Coulter core revenues grew in the mid-single digits, paced by amino acid, urinalysis solutions, and chemistry sales, Joyce said, adding the business also saw strength in its automation sales.
In life sciences, core platform sales grew also in the mid-single digits, led by the US and Europe. The core AB Sciex business was up in the mid-single digits, paced by the clinical, pharmaceutical, and applied markets, Joyce said.
Among its other segments, Test & Measurement posted $913.4 million in sales, up from $898.3 million a year ago, Environmental had sales of $988.5 million, up from $936.1 million, and Dental had sales of $626.9 million, up from $590.2 million. Industrial Technologies sales were down to $893.5 million from $902.5 million in Q4 2013.
For the quarter, Danaher recorded a profit of $661.7 million, or $.92 per share, down from a profit of $789.3 million, or $1.11 per share, in Q4 2013. On a non-GAAP basis, EPS was $1.04, above the average analysts' estimate of $1.03.
Its R&D expenses for the quarter increased 1 percent to $336.1 million from $332.2 million a year ago, while SG&A costs rose 6 percent to $1.58 billion from $1.49 billion.
"We were very pleased with the strong finish to 2014," Joyce said on the call. "The Danaher Business System continued to enhance our competitive advantage, driving market share gains, solid core margin expansions, and record free cash flow generation."
For full-year 2014, Danaher recorded total sales of $19.91 billion, up 4 percent from $19.12 billion in 2013 and beating the consensus Wall Street estimate of $19.89 billion.
Core revenues were up 3.5 percent from 2013 on a non-GAAP basis, Danaher said, while acquisitions added 1.5 percent of growth. Currency translation tamped down revenues by 1 percent.
Life Sciences & Diagnostics sales grew to $7.19 billion from $6.86 billion in 2013. Test & Measurement sales were up to $3.46 billion from $3.42 billion, while Environmental grew to $3.55 billion from $3.32 billion. Dental was up to $2.19 billion from $2.09 billion, and Industrial Technologies improved to $3.53 billion from $3.43 billion.
Danaher posted a profit of $2.60 billion, or $3.63 per share, in 2014, compared to a profit of $2.70 billion or, $3.80 per share, in 2013. Non-GAAP EPS was $3.68, short of the average analysts' estimate of $3.71.
Danaher spent $1.31 billion on R&D in 2014, up almost 1 percent from $1.25 billion in 2013, and spent $5.70 billion on SG&A, up 5 percent from $5.43 billion in 2013.
The company ended 2014 with $3.01 billion in cash and cash equivalents.
For Q1 2015, Danaher projected EPS in the range of $.76 to $.80. On an adjusted basis, EPS is anticipated to be between $.90 and $.94. Core revenues are expected to grow at least 4 percent, Joyce said on the call.
For full-year 2015, the company guided EPS to between $3.81 and $3.91. On a non-GAAP basis, EPS is expected in the range of $4.30 to $4.40.
The company previously set the range at $4.35 to $4.45. Joyce said that the improving US dollar is expected to reduce earnings for the year by about $.10 per share. Core revenues are projected to grow 3 to 4 percent year over year, he added.