Danaher Corp (NYSE:DHR) stock rose 4.28% (As on April 23, 11:25:33 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY25. Revenues from the Life Sciences segment totaled $1.68 billion, down 3.5% year over year. Core sales of the segment decreased 4% year over year. Revenues from the Diagnostics segment totaled $2.44 billion, down 3.1% year over year. Revenues from the Biotechnology segment totaled $1.61 billion, up 6% year over year. Exiting the first quarter, DHR had cash and equivalents of $2 billion compared with $2.1 billion at 2024-end. Long-term debt was $16 billion at the end of the quarter compared with $15.5 billion at the end of December 2024. Danaher has generated net cash of $1.3 billion from operating activities in the first three months of 2025 compared with $1.7 billion in the previous year’s comparable period. Capital expenditures totaled $245 million in the same period, down 15.8% year over year. Adjusted free cash flow decreased 27% year over year to $1.06 billion in the first three months of 2025.

DHR in the first quarter of FY25 has reported the adjusted earnings per share of $1.88, beating the analysts’ estimates for the adjusted earnings per share of $1.62, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 1 percent to $5.74 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $5.56 billion. This is due to the lackluster performance of the Diagnostics and Life Sciences segments. DHR’s core sales were flat in the quarter. Acquisitions had a positive impact of 0.5% on quarterly sales while foreign-currency translations had an adverse impact of 1.5%. In the first quarter, Danaher’s cost of sales decreased 3.4% year over year to $2.2 billion. Gross profit of $3.51 billion increased 0.7% year over year. The gross margin was 61.2% compared with 60.2% in the year-ago quarter. Danaher’s operating profit decreased 2.9% year over year to $1.27 billion. Operating margin contracted to 22.2% from 22.6% in the year-ago quarter.

For the second quarter, Danaher expects adjusted core sales from continuing operations to increase in the low single digits on a year-over-year basis. The metric is anticipated to increase approximately 3% on a year-over-year basis in 2025. The company expects adjusted earnings to be $7.60-$7.75 per share.