(Reuters) -Life Sciences firm Danaher on Tuesday beat Wall Street’s third-quarter profit and revenue estimates, buoyed by resilient demand for its diagnostic testing tools and services, sending its shares up 1.3% in premarket trading.
The company also maintained its expectations for full-year adjusted profit.
Danaher, which provides tools and technologies that help pharmaceutical companies develop and make drugs, noted increased client spending this quarter as drugmakers accelerate drug discovery due to upcoming patent expirations.
Demand for its respiratory tests also rose as customers prepared for the upcoming respiratory season, Danaher said.
The company’s China business, which accounts for 15% of its annual revenue, continues to face softness due to Beijing’s volume-based procurement policies that prompt the government to purchase in high volumes for cheaper prices.
This, along with the Asian country’s healthcare reimbursement changes, resulted in a mid-single-digit decline in core revenue for the quarter in China.
Danaher previously flagged that demand from academic and government sectors remained soft due to uncertainty around research funding, while clinical diagnostics and applied markets stayed stable.
The company said it anticipates an annual tariff impact of “several million dollars” and expects to offset it by making supply chain adjustments, manufacturing footprint changes and cost-saving actions.
The company forecasts annual adjusted profit per share of $7.70 to $7.80, compared to analysts’ estimate of $7.70, according to data compiled by LSEG.
Adjusted profit for the quarter came in at $1.89 per share, beating estimates of $1.72 apiece.
Third-quarter sales came in at $6.05 billion, surpassing analysts’ estimates of $6.01 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Vijay Kishore)
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