Here's Why the Slump in Danaher Stock This Week Looks Like a Buying Opportunity
The company delivered a mixed earnings report, but the sell-off looks like an overreaction.
Overview
Shareholders in biotechnology, life sciences, and diagnostics solutions company Danaher (NYSE: DHR) have had an interesting week. Their stock crashed early in the week on the release of its second-quarter earnings, only to recover somewhat through the week and start Friday morning having declined 12.1% on the week.
Investors can be forgiven for wondering why the stock declined after the company's second-quarter earnings beat estimates and management raised its full-year earnings per share (EPS) guidance to $8.45-$8.60 from a $8.35-$8.55 previously.
Details
The answer lies in the fact that $0.07 to $0.08 of the increase in guidance comes from the earlier-than-expected acquisition of the medical technology company Masimo. In addition, Danaher reduced its full-year core sales growth expectations in its highest margin business, biotechnology.
Source
Originally published at www.fool.com.