Ugly Earnings from Danaher and SEI Investments

Danaher (DHR) isn’t doing as well I hoped. The economy is really putting the squeeze on them. Q1 earnings came in at 72 cents a share which was a penny shy of forecasts. In January, the company said to expect 70 to 80 cents a share.
What’s most troubling is that they lowered both ends of their full-year forecast by 40 cents a share. Danaher now sees FY 2009 EPS ranging from $3.30 to $3.70 a share. At the current, the stock isn’t outrageously overpriced, but I don’t see a lot of upside. Ultimately, I like Danaher due to their management, it’s not a value play. For now, I’m sticking with them.
SEI Investments (SEIC) also had a rough quarter. The company earned 18 cents a share, but there was a five cent charge. Adding that back in, SEIC beat the 22-cent consensus by a penny a share, but revenues dropped 26%. It looks like business is hurting across the board.
The good news is that like a lot of financials, SEIC has had a freaky rally since its March low. The bad news is that business has been turning downward for the past year.

Posted by on April 23rd, 2009 at 5:08 pm


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