FPA Queens Road Value Fund on Danaher Corporation
Thesis
Danaher is presented as a recovering health-care holding as the bioprocessing and diagnostics franchises continue improving. Subsequent to quarter-end, the company reported 5.5% core revenue growth excluding respiratory products. Management also raised full-year earnings guidance, providing evidence that the recovery is translating into a better financial outlook. The fund sees progress in the operating businesses rather than relying solely on a stronger stock price.
“Danaher continued to show steady recovery in its bioprocessing and diagnostics businesses; subsequent to quarter end, the company reported core revenue growth excluding respiratory products of 5.5% and raised its full-year earnings guidance.”
Key risks
- The recovery in bioprocessing and diagnostics may fail to continue.
- Respiratory products remain excluded from the highlighted core-revenue growth figure, suggesting uneven business-line performance.