|Bid||164.20 x 1200|
|Ask||164.23 x 3200|
|Day's Range||163.33 - 166.35|
|52 Week Range||110.66 - 169.19|
|Beta (5Y Monthly)||0.81|
|PE Ratio (TTM)||40.51|
|Earnings Date||Apr 15, 2020 - Apr 19, 2020|
|Forward Dividend & Yield||0.68 (0.41%)|
|Ex-Dividend Date||Dec 25, 2019|
|1y Target Est||175.75|
South Korea's antitrust watchdog has approved Danaher Corp's proposed $21.4 billion acquisition of General Electric's biopharma division on condition that they sell certain assets to address monopoly concerns. The U.S. medical equipment maker Danaher got conditional EU approval in December for the deal after agreeing to sell five businesses to address worries about competition. GE agreed a year ago to sell its biopharma business to Danaher in the biggest strategy reversal under its Chief Executive Lawrence Culp.
Danaher's (DHR) fourth-quarter 2019 earnings benefit from sales growth and margin improvement. It expects to complete the BioPharma buyout in the first quarter of 2020.
Danaher (DHR) delivered earnings and revenue surprises of 1.59% and 1.71%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Danaher , the Washington, D.C.-based life sciences and diagnostics conglomerate, said fourth-quarter net income climbed to $1.26 billion, or $1.73 a share, from $746.8 million, or $1.05 a share. Its adjusted EPS rose 12.5% to $1.28 a share, with revenue up 5.5% to $4.9 billion. Analysts polled by FactSet expected earnings of $1.25 a share on revenue of $4.79 billion. Danaher forecast 2020 adjusted EPS between $4.80 and $4.90 with core revenue up about 5%. Analysts expected 2020 adjusted EPS of $5.34.
(Bloomberg Opinion) -- General Electric Co.’s shares have traded more on hope than hard math over the past year, but it looks like CEO Larry Culp’s turnaround efforts are starting to yield real results.Free cash flow is the key number to watch when the company reports earnings, and GE said Wednesday that it generated $2.3 billion from its industrial businesses over the course of 2019. That exceeded the high end of GE’s guidance range, which was updated twice over the course of the year from an initial call in March for free cash flow to be at best zero. Was Culp sandbagging expectations, or setting a low bar to start with and artfully managing to a positive surprise? (1) It’s a fine line, but either way, the strategy worked. GE shares climbed more than 50% in 2019 and shareholders were still wowed enough by Wednesday’s results to send the stock up an additional 10%.A lot of that optimism has to do with GE’s forecast for 2020. The company is projecting free cash flow will at least roughly match 2019’s performance and potentially rise to as high as $4 billion. That would still fall below what GE generated in 2018 amid depressed results, but would represent significant progress nonetheless, and exceeds most analysts’ estimates. The company plans to hold a meeting with investors this coming March to lay out its outlook in more detail. On the earnings call, however, Culp let a few details slip.The beleaguered power and renewables units will likely continue to burn cash in 2020, with power improving from the negative $1.5 billion in cash flow in 2019 and renewables seeing a deterioration from the negative $1 billion the unit saw last year. Aviation will be flat to up from the $4.4 billion level of 2019, with the return of Boeing Co.’s 737 Max the biggest source of variability. That leaves health care as the one question mark. We already know the unit will be losing cash flow from the biopharma business that’s being sold to Danaher Corp. Without biopharma, the health-care division would have generated about $1.2 billion in cash flow in 2019 and GE had previously guided for an increase in 2020. Taking all of that together, GE should be able to fall well within its guidance range, but the potential to rack up a similar string of outsize positive surprises is arguably more limited this year.Boeing’s Max is the biggest source of volatility for GE’s guidance, Culp said on the earnings call, and the company is currently modeling for a mid-2020 return of the jet, in line with Boeing’s most recent “best estimate.” Boeing also reported earnings today and, based on that timeline, announced a fresh $5.2 billion in charges tied to compensation for airlines and additional production costs. The company also said it anticipates $4 billion in “abnormal costs” for restarting production of the jet. That brings the total bill for the Max crisis to more than $18 billion, before accounting for any fines or legal penalties from numerous lawsuits and government investigations.GE makes the engines for the Max through its CFM International joint venture with Safran SA and expects to see its shipment rate cut in half in 2020 amid the production halt. Asked about the $1.4 billion drag on free cash flow from the Max grounding in 2019, outgoing Chief Financial Officer Jamie Miller implied free cash flow would have been that much higher without that impact. In that case, arguably 2020 results could also be higher, but there are a lot of moving pieces here and it feels like GE is being more prudent than deliberately conservative.The shift from optics to fundamentals is a welcome one. Culp’s task now is to keep the momentum going. In contrast to this time last year — when expectations could hardly have been much lower for GE — there’s now a fair amount of optimism reflected in the shares. After the stock pop on Wednesday, the company is currently valued at about 28 times its expected 2020 industrial free cash flow of at most $4 billion. That compares with about 20 times at Honeywell International Inc. and about 18 times for Emerson Electric Co. Put another way, much of GE’s anticipated progress in this multi-year turnaround is already priced in to the stock. But so far, Culp has proved the skeptics wrong and the optimists justified. So maybe there’s more room yet for hope.(1) To put that in perspective, consider that about a month before GE gave its initial comments on 2019, uber-bear JPMorgan Chase & Co. analyst Steve Tusa was forecasting $2.5 billion in industrial free cash flow for 2019 -- meaning the actual results are actually weaker than what even he had expected heading into the year.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
General Electric's (GE) fourth-quarter 2019 earnings benefit year over year on improved margin profile. It remains committed to expanding growth opportunities.
GE reported better-than-expected fourth-quarter numbers. The 2020 outlook was below Wall Street predictions, but strong cash-flow performance has the stock up more than 7%.
Danaher's (DHR) fourth-quarter earnings and organic sales results are expected to reflect gains from strong Diagnostics and Life Sciences segments. High costs and forex woes might have ailed.
Danaher Corporation (NYSE: DHR) announced today that it has changed the time for its fourth quarter 2019 conference call and webcast. The call will now begin at 7:30 a.m. ET on Thursday, January 30, 2020.
Danaher (DHR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Investors are starting to believe in General Electric (NYSE:GE) again. GE stock has rallied some 54% from August lows. And there's a case that the rally can continue.Source: testing / Shutterstock.com After all, the bull case for General Electric stock rests on a turnaround engineered by chief executive officer Larry Culp. Culp transformed Danaher (NYSE:DHR) into a technology powerhouse; Danaher stock rose some 530% during his 14-year tenure. * 10 Cheap Stocks to Buy Under $10 Culp's appointment as General Electric's CEO on Oct. 1, 2018 was greeted with hopes that Culp could work similar magic: GE stock rose 7.1% on the news. But that enthusiasm has dimmed over time. Even with the rally over the past five months, General Electric shares are up less than 2% in the fifteen-plus months since Culp's hiring was announced.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe lack of upside so far suggests that more upside could be on the way if General Electric can drive the hoped-for turnaround. That's still a huge 'if,' however. Fourth quarter earnings on Jan. 29 will be huge in establishing how much progress GE is making -- and how much confidence investors can have in its future. Why Q4 Earnings Won't Change the CaseThe fourth quarter numbers themselves may not be all that important. Analyst estimates are soft, with the Street looking for earnings per share to climb a penny year-over-year on revenue down 23.5%.The top line pressure isn't necessarily the sign of a declining business. GE Aviation likely will see short-term pressure from the 737 MAX issues at key customer Boeing (NYSE:BA). And a reduction in the company's stake in Baker Hughes (NYSE:BKR) means that business no longer will be part of GE's consolidated financials.Q4 almost certainly isn't going to be impressive. Of course, that won't surprise anyone who's been paying attention. These two short-term factors will hit the reported numbers. And from a long-term standpoint, even Culp himself has emphasized more than once that the turnaround here will take time.The one number that will be closely watched is free cash flow. General Electric already has raised its outlook twice this year, and needs to hit its target. The gap between earnings and cash flow long has been a problem for GE stock. It was a key part of the (admittedly questionable) short seller report that sent shares tumbling briefly last year. And disappointing cash flow generation contributed to the two dividend cuts seen in recent years.Reaching the current forecast of roughly $2 billion in industrial cash flow (which excludes contributions from GE Capital) would be a step toward restoring GE's credibility. That aside, Q4 numbers, barring a huge surprise, seem highly unlikely to change sentiment toward General Electric.But that doesn't mean the fourth quarter release doesn't matter. It does. Why the Q4 Earnings Release Might Change the CaseThe focus won't be on the backward-looking numbers for a quarter affected by external factors. It's going to be on 2020 guidance.Again, General Electric has a long road ahead. Success is not guaranteed. As Dirk Hackbarth, Professor of Finance at the Boston University Questrom School of Business, told InvestorPlace:"Given its rebound, GE's future seems to be less of a "continued turnaround" and more one of a "strategic disinvestment" of its non-core pieces for the best prices it can get…Moreover, the proceeds from asset sales and spin-offs should be used to gradually de-lever GE to a level that is more in line with its profitability (e.g. return on assets) going forward."The bull case is that this will become a "leaner and meaner" General Electric. And so it would do wonders for GE stock if the company can show some progress this year. Right now, analysts aren't sure it will. Wall Street estimates for 2020 earnings per share currently have a wide range: the low estimate, according to Yahoo! Finance, is 49 cents, while the most bullish projection sits at 77 cents.That range isn't surprising given that analyst price targets too have a large split, as Hackbarth pointed out and Barron's noted last year. At the moment, the most bearish analyst (which I believe is Morgan Stanley's Stephen Tusa, long a GE skeptic) values GE stock at $5. The high target is $14.In that context, the 2020 outlook becomes exceedingly important. Full-year 2019 adjusted EPS should come in around 61 cents. If GE guides toward the low end of Street estimates, GE stock quickly looks overvalued. Investors are paying something close to 20x earnings -- and a higher multiple to free cash flow -- for a business still in decline.If GE supports more bullish expectations, however, this story gets much more interesting in a hurry. Guidance for, say, 70 cents would imply double-digit profit growth in 2020. Yet GE stock would be trading at roughly 17x that guidance. Rival Honeywell (NYSE:HON) trades at 21x 2020 consensus earnings with single-digit growth expected. A Big Stretch for GE StockAgain, next week's release won't prove that GE is destined for a turnaround -- or that it's doomed to further declines. But 2020 guidance, in particular, well may establish the direction of General Electric stock for several months, if not the rest of this year.It could go either way. GE stock could look very different depending on the trajectory established by 2020 results. Hackbarth forecast that the stock "more likely stabilizes in the current price range" this year. If 2020 performance in line with current expectations, that forecast is probably correct.But if GE can surprise to the upside, the story improves. GE has "many attractive parts," as Hackbarth put it. Aviation should benefit from long-term air travel demand. Healthcare has real potential, as I detailed last month. GE Power has substantial room for improvement. Those three units underpin the bull case here.That bull case, however, exists mostly on paper for now. It's up to Culp and GE to turn that theoretical potential into practical returns and cash flow. A confident outlook for 2020 can drive more confidence on that front, and thus more confidence in GE stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post Why Next Week's Earnings Are Huge for General Electric appeared first on InvestorPlace.
Once an iconic industrial giant, few companies have suffered as ignominious a loss as General Electric (NYSE:GE). In fact, the GE stock price peaked in the 2000s era dot-com bubble, never threatening to regain its former glory. But with shares turning in a tremendous performance in 2019, can this beleaguered organization do the impossible and recover?Source: JPstock / Shutterstock.com Obviously, I can appreciate the healthy skepticism that abounds with this name. Not only did GE stock peak roughly 20 years ago, it plummeted following a sizable rally leading up to the 2008 financial crisis. Shares again crashed in 2017 after the company's fiscal situation became untenable.Plus, there's the adage: if shares are cheap, there's usually a reason for it. With GE stock, you're taking a big risk that management can pull off a perhaps unprecedented recovery.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo be fair, the business leader that has the potential to do this is current CEO Larry Culp. An executive with a long history of accomplishments, he grew the market capitalization of his previous employer Danaher (NYSE:DHR) to $50 billion from $9.7 billion during his 14-year tenure. * 9 Up-and-Coming Small-Cap Stocks to Watch That said, Culp transformed a solid company to a great one in Danaher. But with General Electric, the wall that he must climb is in a different dimension. To draw a comparison, GE stock is the Chesapeake Energy (NYSE:CHK) of the industrial sector in that excellent leadership is not enough: GE requires other factors to shift favorably to see the recovery through.Can it happen? It's not an opportunity for risk-averse investors. However, if you want to take a small, measured gamble, here are three elements to consider: GE Stock May Enjoy a Geopolitical TailwindGeneral Electric's long-term stakeholders are undoubtedly familiar with the saying, "when it rains, it pours." That was evident when Boeing (NYSE:BA) suffered a serious crisis with its 737 Max 8 jetliner. Due to a faulty stabilization mechanism, government agencies throughout the world grounded the plane until Boeing got their act together.As luck would have it, General Electric is the manufacturer of the Max 8's engine. Moreover, the company's aviation division was one of the few bright spots. Without it, the nearly impossible becomes simply the impossible. Naturally, then, investors avoided GE stock like the plague.However, the 737 Max 8 crisis won't last forever. Once Boeing earns back its customers' trust, General Electric can then get back to business.Also, GE's fortune may have finally turned regarding outside tailwinds. Presently, the headlines are not focused on Boeing, but rather, tensions between the U.S. and Iran. With the possibility that the conflict could eventually turn hot, GE's military aviation unit may enjoy a sizable lift. Power Is Still RelevantOne of the conspicuous societal shifts that we've witnessed over the years is environmentalism. Concerns about sustainability have dominated the headlines last year. And one of the forwarded solutions is to promote clean energy initiatives.Last month, the Los Angeles Department of Water and Power announced their intention to convert one of their power plants to 100% hydrogen by 2045. To do this, the utility firm will integrate a variety of renewable energy platforms to produce hydrogen via electrolysis. Currently, technological barriers prevent meeting the 100% hydrogen goal earlier.But according to Harvard researchers Lee M. Miller and David Keith, that might not come to fruition. Based on their analysis, the U.S. is grossly underestimating the land requirements for going fully green. As an example, if the entire country were to be powered via renewable energy sources, "it could require one-third of the country be covered by renewable solar and wind energy facilities."In other words, General Electric's power unit is still relevant. It's just taking some time for influential people and organizations to realize this. Technicals Are CompellingWe all know that GE stock is cheap. And as I mentioned above, such discounts exist for typically unpleasant reasons.However, the opposite angle is that shares have jumped substantially from its late 2018 lows. While hiccups have presented themselves along the way, the equity has marched steadily higher. Thus, there's a reason for that too.At time of writing, GE stock is trading just under $12. That places shares at the support line just prior to its October 2018 crash. To put it another way, GE is at a crossroads.For conservative investors, it's safer to assume that shares have again hit a peak. Culp can work wonders but General Electric requires a miracle. But for speculators, there might be enough momentum (at least in the nearer term) to spark a significant lift.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Up-and-Coming Small-Cap Stocks to Watch * 7 Energy Stocks to Buy on the Resurgence of the Oil Boom * 3 Standout Oil Services Stocks to Buy The post 3 Factors to Consider Before Gambling on GE Stock appeared first on InvestorPlace.
Danaher's (DHR) fourth-quarter 2019 organic sales and earnings results are predicted to be better than that mentioned previously, driven by healthy performance of the Life Sciences and Diagnostics segments.
Danaher Corporation (NYSE: DHR) (the "Company") announced today that its President and Chief Executive Officer, Thomas P. Joyce, Jr., will comment tomorrow on the Company's fourth quarter 2019 performance in a presentation at the J.P. Morgan Healthcare Conference in San Francisco, California at 8:00 a.m. PT.
As with many other stocks in 2019, General Electric (NYSE:GE) ended with a nice bullish move. Starting in early October, shares of GE stock went from $8.28 to around $12 per share. This put the year-long return for 2019 at about 53%, which exceeded the gain on the S&P 500.Source: testing / Shutterstock.com This performance, though, is more than just about general optimism in the overall markets. CEO Larry Culp has done a standout job at the helm since coming on board in October 2018.Although, this should not be a surprise. When he was the CEO of Danaher (NYSE:DHR) -- from 2000 to 2014 -- there was a five-fold jump in both the revenues and market cap.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHe showed that he can effectively manage the strategic vision, as well as the nuanced details of a complex organization. He also demonstrated a great ability to apply process methodologies, like lean manufacturing -- which strives for continuous improvement. This approach was initially innovated at Toyota (NYSE:TM). * 8 of the Strangest Stocks Worth Your Time When Culp became CEO of GE, the situation was dire. The company had gone through two CEOs, the shares were delisted from the Dow, the dividend was slashed and the losses were piling up. From 2016 to 2018, the General Electric stock went from $32 to under $7.However, Culp put together a smart playbook to right the ship. Of course, a key part of this was an aggressive focus on reducing the bloated cost structure. He also was swift in unloading assets, like the biotech business and Baker Hughes (NYSE:BKR).Yet, this was mostly about the low-hanging fruit. Going forward, it will likely be more difficult to find ways to improve the organization. Many Problems RemainOne of the biggest issues for GE stock is the GE engine segment, which accounts for a hefty 60% of the industrial profits. The problem, of course, is Boeing's (NYSE:BA) 737 MAX, which has been sidelined due to two traffic airline crashes. It is still far from clear when production and deliveries will resume. But in the meantime, GE is feeling the impact, with a quarterly loss of $400 million in cash flows. This is likely to put lots of pressure on the company given the enormous debt load of $93.2 billion.Furthermore, the other company segments are also lagging. For example, even though the Power business has shown improvement, revenues were still off by 14% in the latest quarter. What's more, the Healthcare Systems unit has been mostly lackluster, with a meager 5% increase on the top line. There has continued to be weakness in China and the Middle East.Then there is GE Capital, which is suffering from the liabilities of its long-term care business. In the quarter, there was a loss of $645 million. Bottom Line on the GE Stock PriceFor the most part, Culp has stabilized operations, which is definitely crucial. Not long ago, there were serious concerns about the viability of GE; The situation had gotten that bad.But despite all this, it does look like that much of the good news has already been factored into GE stock. Consider that the forward price-to-earnings ratio is 18x, which is rich for a company that still has a host of problems. By comparison, Honeywell (NYSE:HON) trades at 20X and United Technologies (NYSE:UTX) is at 18X. No doubt, both of these companies are on much more solid footing.So, at least in the near-term, it's probably best to be cautious with GE stock.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Itas Time to Be Cautious With General Electric Stock appeared first on InvestorPlace.
Danaher Corporation (NYSE: DHR) announced that President and Chief Executive Officer, Thomas P. Joyce, Jr., will be presenting at the J.P. Morgan Healthcare Conference in San Francisco, California on Tuesday, January 14, 2020 at 8:00 a.m. PT. The audio will be simultaneously webcast on and the presentation will be archived on www.danaher.com.
Danaher Corporation (NYSE: DHR) announced today that it will webcast its quarterly earnings conference call for the fourth quarter 2019 on Thursday, January 30, 2020 beginning at 8:00 a.m. ET and lasting approximately 1 hour.