Earnings Preview: Danaher, Cepheid Report Results Thursday

|
Includes: CPHD, DHR
by: Robert Weinstein

Danaher Corporation (NYSE:DHR) is due to report earnings before the opening bell on October 20, 2011.

Overview
DHR trades an average of 4.5 million shares per day.

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services primarily in North America, Europe, and Asia/Australia. The company was founded in 1969 and is headquartered in Washington, D.C.

52-Week High: $56.09
52-Week Low: $39.34
Book Value: $24.06
Float Short: 2.21%

Analysts are expecting an improvement of $0.01 in earnings per share compared to last quarter's results of $0.69. Investors will be looking to see a number north of $0.7 per share, based on the earnings estimates. Analyst estimates range between $0.68 and $0.73 per share.

The stock has fallen in price -1.22% in the last month, with a one-year change of 8.46%. When comparing to the S&P 500, the year-to-date difference is -1.19%.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $13.20 billion for 2010 vs. $11.18 billion for 2009. The bottom line has rising earnings year-over-year of $1.79 billion for 2010 vs. $1.15 billion for 2009. The company's earnings before income and taxes are rising, with an EBIT year-over-year of $2.17 billion for 2010 vs. $1.54 billion for 2009.

paid2trade.com revenue gross bar chart for DHR

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Jun-11 $ 3.52 B $ 3.71 B $ 187.75 M 5.33%
Mar-11 $ 3.32 B $ 3.35 B $ 26.88 M 0.81%
Dec-10 $ 3.50 B $ 3.61 B $ 109.31 M 3.12%
Sep-10 $ 3.14 B $ 3.19 B $ 54.89 M 1.75%
Jun-10 $ 3.21 B $ 3.31 B $ 103.73 M 3.23%
M = millions, B = billions

Differences are rounded.
Some one-time items are often excluded in reported EPS.

Reported earnings per share compared to the mean estimate. Differences are rounded.

Cepheid (NASDAQ:CPHD) is expected to report earnings for last fiscal quarter after the closing bell on October 20, 2011.

Overview
Cepheid, a molecular diagnostics company, engages in developing, manufacturing, and marketing integrated systems for testing in the clinical market, as well as for application in legacy biothreat, industrial, and partner markets. The company was founded in 1996 and is based in Sunnyvale, California.

52-Week High: $42.65
52-Week Low: $17.45
Book Value: $2.91
Float Short: 12.42%

On average, 16 analysts are expecting a drop of $-0.01 in earnings per share compared to last quarter's results of $0.03. Investors will be looking to top $0.02 per share, based on the estimated mean earnings.

The P/E ratio has been discounted, as the current trailing twelve months (ttm) P/E ratio is 1004, while the forward P/E ratio is now 401.6. It will be interesting to see if pricing is currently at a discount, or if the market has been correct to price in lower growth expectations. The stock has moved higher in price 9.01% in the last month, with a one-year change of 104.58%. It is clear to see the stock is performing much better than the overall market, with a relative double-digit gain. When comparing to the S&P 500, the year-to-date difference is 81.30%.

For the same fiscal period year-over-year, revenue has improved to $212.47 million for 2010 vs. $170.63 million for 2009. The bottom line has rising earnings year-over-year of $-5.92 million for 2010 vs. $-22.50 million for 2009. The company's earnings before income and taxes are rising, with an EBIT year-over-year of $-5.34 million for 2010 vs. $-23.37 million for 2009.

paid2trade.com revenue gross bar chart for CPHD

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Jun-11 $ 60.97 M $ 67.03 M $ 6.06 M 9.94%
Mar-11 $ 57.26 M $ 57.64 M $ 0.38 M 0.66%
Dec-10 $ 55.82 M $ 58.73 M $ 2.91 M 5.21%
Sep-10 $ 52.98 M $ 56.06 M $ 3.08 M 5.81%
Jun-10 $ 49.34 M $ 49.64 M $ 0.30 M 0.61%
M = millions, B = billions
Differences are rounded.
Some one-time items are often excluded in reported EPS.

Reported earnings per share compared to the mean estimate. Differences are rounded.

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.