Back to top

Image: Bigstock

Becton, Dickinson (BDX) Beats on Q1 Earnings, Guidance Solid

Read MoreHide Full Article

Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, reported first-quarter fiscal 2018 earnings of $2.48 per share, which beat the Zacks Consensus Estimate of $2.40. Adjusted earnings increased 3.9% at constant currency (cc) on a year-over-year basis.

The company reported revenues of $3.08 billion, beating the Zacks Consensus Estimate of $3.05 billion. This represents an increase of 5.4% from the prior-year quarter, or 3.7% at cc.

The stock has a Zacks Rank #2 (Buy).

Segmental Analysis

BD Medical

The BD Medical segment generated revenues of $2.04 billion, up 1.9% at cc on a year-over-year basis.

The segment's result reflects an adverse impact from the change in the U.S. dispensing business model. However, BD Medical witnessed strong performance in the Medication and Procedural Solutions as well as the Diabetes Care and Pharmaceutical Systems units. 

 

Becton, Dickinson and Company Price, Consensus and EPS Surprise

 

 

Medication and Procedural Solutions registered revenues of $925 million in the BD Medical segment, up 5% year over year at cc.

Diabetes Care reported revenues of $277 million, up 2.2% at cc on a year-over-year basis.

Pharmaceutical Systems reported revenues of $245 million, up 3.7% at cc on a year-over-year basis.

However, Medication Management Solutions reported revenues of $587 million, down 3.4% at cc on a year-over-year basis.

BD Life Sciences

The BD Life Sciences segment generated revenues of $1.05 billion, up 7.3% at cc from the year-ago quarter. The segment's performance indicates strong numbers across the Biosciences, Diagnostic Systems and Preanalytical Systems units.

Preanalytical Systems recorded revenues of $375 million in the first quarter, up 4% at cc on a year-over-year basis.

Diagnostic Systems reported revenues of $381 million, up 12.5% year over year at cc.

Meanwhile, the Biosciences unit registered revenues of $289 million, up 5.3% at cc.

Geographic Results

United States

U.S. revenues were roughly $1.66 billion, up 1.6% on a year-over-year basis.

Within the BD Medical segment, growth in the Medication and Procedural Solutions and Diabetes Care units was offset by declines in the Medication Management Solutions and Pharmaceutical Systems units.

BD Life Sciences segment results within the United States were primarily driven by Diagnostic Systems and Preanalytical Systems units in the reported quarter. 

International Revenues

International revenues rose 6.3% to $1.42 billion at cc.

Both BD Medical and BD Life Sciences segment registered strong growth outside the United States.  Within the BD Medical segment, growth was driven by strength in the Pharmaceutical Systems unit, aided by impressive results in the Medication and Procedural Solutions and Diabetes Care units.

Guidance

Including the accretion from C. R. Bard acquisition, BD expects fiscal 2018 revenues to increase in the range of 30-31% on a reported basis. However, revenues are expected to grow in the range of 4.5-5.5%.

Notably, revenues are likely to be affected by the change in the U.S. dispensing business model.

The company expects adjusted earnings per share in the range of $10.85-$11.00, up from the previous range of $10.55-$10.65. The current range indicates growth of approximately 15% to 16% on a reported basis, or approximately 12% at cc.

Bottom Line

BD ended the first quarter of fiscal 2018 on a solid note, beating the Zacks Consensus Estimate for both the counts. A strong guidance for fiscal 2018 instills investor’s optimism. BD recently completed the acquisition of C. R. Bard. The company will now establish a new segment — BD Interventional — where Bard will be integrated. Further, in collaboration with Check-Points Health B.V., the company obtained CE Mark for molecular screening test for antibiotic-resistant carbapenemase-producing organisms (CPOs) on the BD MAX System.

On the flip side, BD continues to face headwinds because of the previously disclosed change in its U.S. dispensing business model. Further, lackluster performance by the Medication Management Solutions unit is a concern. BD temporarily paused shipments of insulin infusion sets. The recent recall of Barricor blood collection tubes in the quarter adds to the woes.

Other Key Picks

A few other top-ranked stocks that reported impressive earnings this season are PetMed Express (PETS - Free Report) , PerkinElmer and Accuray (ARAY - Free Report) . While PetMed sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Accuray carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed recently announced third-quarter fiscal 2018 adjusted earnings per share of 44 cents. The bottom line soared 88.3% year over year. Revenues in the reported quarter rose 13.7% year over year to $60.1 million.

PerkinElmer reported fourth-quarter 2017 adjusted earnings per share of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.

Accuray reported a loss of 6 cents per share in second-quarter fiscal 2018 results, narrower by 5 cents from the year-ago quarter’s figure. The top line improved 15% year over year to $100.3 million.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. 

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Accuray Incorporated (ARAY) - free report >>

Becton, Dickinson and Company (BDX) - free report >>

PetMed Express, Inc. (PETS) - free report >>

Published in