Danaher Boosts Low End of Guidance

Good news today from Danaher (DHR). The company raised the low-end of its guidance. The original forecast for the first quarter was 59 cents to 64 cents a share. Now, it’s 61 cents to 64 cents a share.
Don’t overlook these items on your stocks. It’s always good to see companies provide additional guidance or simply to “reaffirm” earlier forecasts.
Anyone can make a bold prediction at the beginning of the year, but better stocks usually provide more guidance between earnings reports. That’s usually a good sign of a well-managed company.
Just a few weeks ago, Danaher reaffirmed its forecast of $3.02 to $3.12 a share for this year. That’s about one-third of what Google will do, and DHR is going for one-sixth the price. (You do the math.)
Danaher is one of best run companies out there. Forbes agrees.
Twenty-five years ago, you could have picked up shares of Danaher for 32 cents a share. Now, it makes that in half a quarter. Since 1981, the stock is up roughly 19,000%.
Sometimes a stock chart says it all. Note the consistently rising earnings, and the falling P/E ratio. This chart should be in the Investor’s Encyclopedia under “exactly what to look for.”
DHRchart.bmp

Posted by on March 8th, 2006 at 10:54 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.