Why Shares of Danaher Soared 15.2% in July
Shares in healthcare-focused industrial company Danaher (NYSE: DHR) rose 15.2% in July according to data provided by S&P Global Market Intelligence. The move comes as a combination of a 5.5% rise in the S&P 500 index in July and a strong set of results from the company on July 23.
The second-quarter earnings report was notable for two reasons:
The Cytiva acquisition always looked like a great deal for Danaher, but few investors could have expected such an excellent start. Management outlined that Cytiva grew its core revenue by more than 20% and helped the life sciences segment grow core revenue by 8% in the second quarter. It's a startlingly strong performance considering that instrumentation sales in the segment are being negatively impacted by ongoing closures of non-COVID-19 related research labs. In addition, Cytiva -- a highly cash-generative business which produced $1.3 billion in free cash flow for GE in 2019 -- helped Danaher improve its free cash flow in the second quarter to $1.3 billion from $900 million in the same period last year.
Source Fool.com
