Danaher Corp., a life sciences and tools developer, beat expectations for the first fiscal quarter of 2019, posting 5.5% core growth despite continued foreign exchange woes and market volatility stemming from pricing pressures and reimbursement debates in the U.S.

The Washington, D.C.-based company raked in $4.88 billion in revenue for the quarter, up from $4.70 billion in the same period a year ago. Non-GAAP adjusted diluted net EPS increased 8% year over year to $1.07, beating the S&P Global Market Intelligence normalized EPS consensus estimate of $1.02.

On a GAAP basis, the company's net earnings totaled $333.8 million, or 46 cents per share, down from $566.6 million, or 80 cents per share, in the year-ago quarter of 2018.

Danaher's life sciences business was highlighted as especially strong, posting 7% growth.

According to Danaher CEO Thomas Joyce, Danaher benefited from continued demand in life sciences research and new product launches, such as a high-speed, high-quality imaging product for 3D biology that allows for the study of organisms, tissue sections and advanced cell cultures.

During an April 18 earnings call, Joyce pointed to the biotech industry and gene therapy applications, which helped drive growth for Danaher's Pall business. Pall produces bioreactors, which are needed for gene therapy manufacturing as well as bioprocessing products.

Joyce reiterated the $21.4 billion acquisition of General Electric Co. biopharma business as an additional positive for the life sciences segment, as the deal will increase capacity to produce biologics, also known as large-molecule drugs, a budding area of interest for the pharma industry.

Nevertheless, Danaher lowered guidance for the rest of 2019, from an EPS range of $4.75 to $4.85 to a range of $4.72 to $4.80, to account for its diluted equity raise to fund the GE deal.

The deal is still expected to close in the fourth quarter and is pending regulatory approval, Joyce said.

Danaher's dental business saw an increase of 2.5% in core revenue, due to ongoing investments for new product developments ahead of its planned spinout.

Diagnostics saw a 5% core revenue growth, benefiting from additions in hematology products, such as an early sepsis indicator recently cleared by the U.S. Food and Drug Administration, which Joyce said would enhance the business' competitive position.

Danaher's environmental and applied solutions, which include water quality and product identification, also posted 5.5% core revenue growth.

International performance

Danaher again reported double-digit growth from China across all four of its business segments.

While several analysts on the earnings call questioned the sustainability of the high growth in China, Joyce emphasized that the policy moves, such as tariffs and the Chinese government's "crackdown" on generics — according to J.P. Morgan analyst Tycho Peterson — would not foreseeably affect the company, as Danaher is not in the "crosshairs" of such policy changes.

Joyce added that this quarter's growth was the ninth consecutive quarter of double-digit growth in China.

North America was noted as an additional positive market, with no "material impact" detected from events such as the U.S. government shutdown and debates over the Affordable Care Act and reimbursement.

Joyce pointed to diagnostics as an example. Diagnostics represents about 2% of healthcare costs but is responsible for over 60% of decision-making.

"We play a vital role in the overall market, but [are] relatively a small portion of the overall cost structure," Joyce said.

However, Joyce noted that Europe, while currently stable, will be a market that "we're watching closely," as concerns persist about the region's circumstances.