"What we've got here is ... failure to communicate," Cool Hand Luke.
As one of the best-loved conglomerates out there (and seldom a cheap stock as a result), Danaher (NYSE: DHR )
operates to a different set of Wall Street expectations than most
companies. In the case of second quarter earnings and forward guidance,
disappointing results in the volatile test & measurement business
not only sent the stock down but will likely renew calls for management
to consider breaking up the company. Perhaps adding a bit of irony to
that, analysts also continue to express frustration that Danaher isn't
making bigger splashes with its M&A efforts.
Danaher is Danaher, and the company will be fine.
The diagnostics business is getting stronger and operations like water
quality/treatment have strong growth potential in markets like China and
India. Though I can't say that the shares have reached a bargain price
yet, this may be a name to add to the watchlist in case the
disappointment coming out of this quarter leads to a more pronounced
skid.
Continue reading here:
Heavy Static At Danaher Corporation
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