Cramer's Morning Take: Danaher 10/22/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC investing Club morning meeting. Jeff, this is one of the more tougher moments. This is the beginning of the chaotic period of the earnings. And the reason why I say it's chaotic is you'll have a company like a Danaher, and it will be good, but then you'll look at the interest rates. The interest rates are up, then people might sell. Then you look at whether the stock has moved, and then you listen to a company that's not promotional, and next thing you know, you have an opportunity. That's how I look at this period.

Jeff Marks (0:34)

Yeah, a lot of earnings today. Almost better than expected. Danaher did report this morning, strong beat on both revenue and earnings per share. Core revenue growth up 0.5%.

That was a surprise. Expectations were for a decline. And obviously, the key line that we always focus on with Danaher is this bioprocessing revenue. And it was up low single digits, order increased high single digits sequentially. They're all on track for this high single digit growth rate in the fourth quarter. So that was all positive.

Jim Cramer (1:07)

Well, look at this. This is what you do. You look at this. This is the, I'm not a technician, but I do enough technical work. This is higher lows, higher lows. And what that means is that every time they speak, they're so non-promotional that people get freaked out. And then you realize they're being conservative.

Jeff Marks (1:26)

Yeah, just running through the rest of the quarter. Life science is down a little bit, still waiting on China stimulus diagnostics better than expected. Some of that was COVID revenues. But the stock turned on the call because a lot of analysts questioned around what the 2025 numbers are going to look like. And, you know, this is historically a very conservative management team, a very prudent management team. We've seen that the whole way with the bioprocessing outlook. And that was really it. They kind of were, it was kind of hard for them to answer what 2025 would be like because we're still in 2024 and the stock reversed. It was down maybe 3% at one point. Opportunity. It's came back. Yeah, it was a good quarter.

Jim Cramer (2:07)

How about for those people who just joined and don't own any data? What do you think?

Jeff Marks (2:10)

Yeah, it's definitely interesting. A quality company arguably shouldn't be down when their most important business is returning to growth. It was good. Quarter is good.

Jim Cramer (2:23)

Right. That's what matters. I mean, again, you take a look at a Verizon. Verizon initially is up. I mean, and then you listen to call and you realize it's not that good. GM is initially down. Then you listen to call and you realize it's very good. We at all time have to recognize that things on the fly are wrong. I want to wait. For instance, and we're going to talk about rapid fire. GE Aerospace down 16 Do you buy it? No. When you see a stock down 16, that's just, guys, they're just going to push it down all day. They just want to sell the stock. Now, I'm not recommending GE Aerospace. I am saying that the situation is very good. And if Boeing has a good number tomorrow and gets a reconciliation finish, it's going to be all upside for GE. So I'm just saying, please, people, do not take action today on stocks that are up. Don't buy them that are up. And when a stock's down really badly, wait, because tomorrow's a better day.

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SPEAKER_3 (3:37)

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