Two More Earnings Beats

We had two more Buy List earnings reports this morning. Danaher (DHR) said that quarterly earnings rose 32% to $1.44 per share. That’s a big beat. Wall Street had been expecting $1.09 per share. Revenue increased 19% to $5.3 billion.

For Q3, Danaher sees revenue growth “in the mid- to high-single digit range.” CEO Thomas P. Joyce, Jr., said, “We are very pleased with our second quarter results—especially in such a challenging environment. Our solid revenue growth, strong cash flow generation and more than 30% adjusted EPS growth are a testament to our team’s commitment to the Danaher Business System and the outstanding portfolio of businesses that comprise Danaher today.”

Hershey (HSY) said that quarterly sales fell 3.4% to $1.71 billion. The company had Q2 adjusted earnings of $1.31 per share. That beat Wall Street’s estimate of $1.13 per share. Hershey said it’s not providing any financial guidance at this time.

The company does expect accelerated sales growth in the second half of the year based on momentum exiting the second quarter, assuming no significant disruption to current consumer trends. The company also expects pricing and cost management to drive margin expansion in the second half of the year. We remain confident that our healthy balance sheet and strong cash flow will enable us to meet current business needs, invest for the future and return cash to stockholders.

The other news this morning is that jobless claims rose for the first time since March. Initial claims increased by 109,000 to 1,416,000 (chart below). Continuing claims were 16,197,000.

Posted by on July 23rd, 2020 at 8:57 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.