Medical Manufacturer Danaher Stock Falls Despite Impressive Financial Earnings

The D.C.-based business rose in pre-market trading, but fell over the course of the day.


4 min read

Opinions expressed by Entrepreneur contributors are their own.


Danaher Corp. is firing on all cylinders.

The company, co-founded by brothers Mitchell and Steven Rales in 1984, morphed from a real estate investment trust into one of the most successful manufacturers of medical and scientific products on the planet.

The Washington D.C.-based company reported blowout financial results before the market opened today. It beat both earnings and revenue estimates by a good margin and raised its forecast of full-year results.

Investors were not impressed. While it rose in pre-market trading, Danaher’s stock fell 3.54 percent on the day along with a large majority of other stocks on the Entrepreneur Index™. The index was down 1.95 percent today, with 50 of the 60 stocks on the index declining.

Danaher was not the only company to be punished after reporting great financials. Netflix absolutely crushed estimates yesterday but gave back most of the 5.3 percent-gain today. Adobe Systems Inc. (-3.31 percent) and Netflix (-4.93 percent), the two biggest gainers on the index in the last two successive days, were among the hardest hit technology stocks.

Related: 10 Pieces of Financial Advice I Wish I Knew in My 20s

Chip-maker NVIDIA was down 1.45 percent despite a Goldman Sachs analyst confirming his buy rating on the stock today. The analyst downgraded several other semiconductor makers including Entrepreneur Index™ member Analog Devices (-2.44 percent) because chip production is currently way above trend. Tech bellwethers Alphabet Inc. (-2.48 percent), Amazon.com (-3.33 percent) and Facebook (-2.82 percent) also fell on the day.

Some of the best corporate earnings results in years are being ignored by investors. More than 80 percent of the S&P 500 companies reporting third quarter results so far have beaten high estimates. Investors are apparently more concerned that this may be as good as it gets.

Rising interest rates, escalating trade wars, slowing growth in China and troubling geopolitical risks are all contributing to massive selling pressure in the market.

No sector of the economy is immune. Drug-makers Alexion Pharmaceuticals and Regeneron Pharmaceuticals, which have held up relatively well in the last volatile week, were down 1.85 percent and 0.96 percent respectively.

Fedex, a good proxy for the U.S. economy was down 2.76 percent. Casino operator Wynn Resorts, down 32 percent so far this year, had one of the biggest declines on the day, falling 3.74 percent. Investors were also not heartened by the news yesterday that CEO Elon Musk was buying more Tesla shares. The stock was down 2.9 percent today. Ford Motor Co. was also down 2.85 percent.

Related: How to Invest $1,000 and Grow It Into $1 Million

Gap Inc. posted the biggest decline on the index today falling 5.79 percent after a J.P. Morgan analyst downgraded the clothing maker to a sell. He suggested the company had operational issues that would hurt it in the all-important holiday season. It didn’t help that President Trump’s chief economic advisor Larry Kudlow called the Chinese “unfair and illegal traders” today, complaining that Chinese trade negotiators “had not responded to any of our asks.” Gap sources more than 20 percent of its products from China.

High dividend paying REITs were one of the few areas of the market that fared marginally better today. Simon Property Group, Equity Residential, Essex Property Trust and SL Green Realty Corp. all posted small gains on the Entrepreneur Index™.

Other gains on the day included Chipotle Mexican Grill (0.44 percent), Extra Space Storage (0.36 percent), Universal Health Services (0.59 percent) and Tyson Foods (0.71 percent).

The biggest gain of the day goes to O’Reilly Auto Parts. A day after posting the biggest decline on the index, the parts manufacturer rose 1.1 percent today.

Source link

more recommended stories

  • Can Social Media Have Negative Effects on the Brain?

    May 24, 2019 2 min read.

  • Elon Musk Received the Highest CEO Compensation Package Ever, and 27 Other Crazy Things We’ve Learned About the SpaceX and Tesla CEO

    The founder of Tesla, SpaceX and.

  • Cannabis Investing Tips for Non-Millionaires

    Want to invest in the cannabis.

  • Stock Market Falls as Trade War Between the U.S. and China Gets Nastier by the Day

    A deal between the world’s two.

  • How Philanthropy Helped Build This Billion-Dollar Liquor Brand

    Taylor Berry, Chief Marketing Officer of.

  • Wall Street Analysts Are Extremely Bearish on Tesla. Here’s Why.

    Tesla falls while the Entrepreneur Index™.

  • The 7-Step Guide To Finding the Right Clients and Avoiding the Ones Who Waste Your Time

    The right client base is the.

  • Now Is the Time to Press Even Harder for Immigration Reform

    The case for incentivizing U.S.-educated, foreign-born.

  • Chip Makers Bounce Back After U.S. Eases Restrictions on Chinese Telecom Giant Huawei Technologies

    Plus, investors had no appetite for.

  • Will Your Product Launch Be a Success? 4 Signs It Won’t Be.

    The truth is, most product launches.

  • A Beginner’s Guide to Starting and Marketing an App

    First-timers in app development tend to.

  • 12 Passive-Aggressive Phrases That Can Destroy Your Business

    Maybe you think you’re being polite,.

  • Cannabis Shops Linked to Lower Crime, Increased Property Values

    A store selling legal marijuana is.

  • What Exactly Is the Biohacking Movement?

    These shifts in mindset, diet and.

  • Snag These Premium Bang & Olufsen Headphones for Nearly Half Off

    Bang & Olufsen’s H4 Bluetooth Over-Ear.

  • These Presentation Templates Can Help You Make a Better Impression

    ShapeSlide’s 40-in-1 Presentation Bundle makes every.

  • Why Entrepreneurs Should Believe They Are Unstoppable

    Josh York, CEO of Gymguyz, talks.

  • 4 Instagram Best Practices for Increasing Sales

    Users are shifting from editorial to.

  • How to Calculate Gross Profit

    Know whether your business is making.

  • Tesla Stock Falls Hard Despite Elon Musk’s Claim That It Will Eventually Have $500 Billion Market Cap

    Plus, Under Armour stock jumps based.

  • Buying Into These Myths Can Make for Bad Hiring Decisions

    Every company can point to a.

  • Technology Stocks Lead Market Higher Despite Another Tesla Crash

    Tesla shares were down after a.

  • 7 Tips for Network Marketing Success

    There are six key elements you.

  • 10 Things You Didn't Realize Were Invented in the 1970s

    From the first mobile phone to.

  • 18 Ways for Digital Nomads to Make Money

    All you need is a laptop,.

  • SpaceX Is Building Another Starship in Florida

    The competition is on. May 15,.

  • Entrepreneur Index™ Rises as Fears of Trade War Dissipate

    The technology sector leads the rebound,.

  • 25 Interesting Facts You Should Know About Chick-fil-A

    One interesting fact about Chick-fil-A? By.

  • These Strategies Help Entrepreneur Combat Anxiety and Depression

    The same character traits make people.

  • Market Tanks — and Uber and FAANG Stocks Fall — After China’s Trade Retaliation

    President Trump may be comfortable with.

  • Supreme Court Rules Against Apple in App Store Price Fixing Case

    The decision paves the way for.

  • Why Athletes Are Using Cannabis for Training and Recovery

    They want more gain, less pain..