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BD (BDX) Posts Upbeat Preliminary Fiscal First Quarter Results

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Becton, Dickinson and Company (BDX - Free Report) , also popularly known as BD, recently announced its preliminary financial results for the first quarter of fiscal 2021, which ended Dec 31, 2020.

The company is scheduled to provide its updated revenue and adjusted earnings per share (EPS) guidance for fiscal 2021 along with its full financial results for the fiscal first quarter on Feb 4, 2021.

Results in Detail

Per the preliminary announcement, the company projects revenues of $5.3 billion for the first quarter of fiscal 2021. This indicates a rise of 25.6% from the prior-year quarter’s figure on a reported basis, driven by solid demand for its COVID-19 diagnostic tests and a better-than-anticipated performance across all three segments. On a currency-neutral basis, revenues are projected to grow 24.2% from the year-ago quarter’s figure. The Zacks Consensus Estimate for revenues in the fiscal first quarter is pegged at $4.72 billion.

During the quarter to be reported, BD witnessed higher acuity of care as well as greater strength in both elective and routine procedure volume in the outpatient setting. Growth in volumes was also boosted by practitioners working through their patient backlog during the period.

The company projects COVID-19 testing revenues for the fiscal first quarter to be around $865 million. This includes BD Veritor revenues of nearly $685 million with the remaining revenues related to the BD Max COVID-19 tests and specimen collection as well as transport.

With respect to BD Medical segment, BD expects worldwide revenues for the fiscal first quarter to be $2.3 billion, implying an increase of 7.9% from the prior-year period’s figure on a reported basis and 6.6% on a currency-neutral basis.

Per the preliminary release, and on a reported basis, BD anticipates its Medication Delivery Solutions and Diabetes Care revenues to grow in the mid-single-digits, Medication Management Solutions revenues to improve in the high-single-digits and Pharmaceutical Systems revenues to climb in double-digits from the respective year-ago numbers.

Inthe BD Life Sciences segment, the company predicts worldwide revenues to be $2 billion for the first fiscal quarter. This suggests a surge of 76.3% from the year-ago period’s figure on a reported basis and 74.3% on a currency-neutral basis.

 

BD exited the quarter at a run-rate of about 10 million tests per month and targets to attain its prior capacity expansion commitments. Per the preliminary results and on a reported basis, Integrated Diagnostic Solutions revenues more than doubled from the prior-year quarter’s figure. This upside could be attributed to COVID-19 diagnostic testing revenues. Biosciences segment revenues fell at a mid-single-digit percentage rate year over year. However, the value surpassed the company's expectations.

In the BD Interventional segment, BD envisions worldwide revenues for the first fiscal quarter to be $1.1 billion, indicating an increase of 6% from the prior-year quarter’s figure on a reported basis and 4.9% on a currency-neutral basis. Per the preliminary results and on a reported basis, Peripheral Intervention and Urology & Critical Care revenues grew in the high-single digits while Surgery revenues grew in low-single digits on a year-over-year basis.

Following its above-mentioned impressive preliminary fiscal first quarter results, BD now projects its revenue growth to be at the upper end of its previously issued guided range. The company also assumes its adjusted EPS to be above its previously issued guided range.

Highlights

In the fiscal first quarter, the company made progress toward completing its Alaris 510(k) submission, which is anticipated to happen late in the fiscal second quarter or in early third fiscal quarter of the current fiscal year. BD is also advancing its strategic agenda, namely its Grow-Simplify-Empower initiatives to create value for its stakeholders for the long term.

Shares Down

Shares dipped 0.02% to $263.01 at the close of the trading session following the preliminary result announcement.

Price Performance

In the past three months, the stock has gained 12.3% compared with 18.3% growth of its industry.

Zacks Rank and Key Picks

BD currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are McKesson Corporation (MCK - Free Report) , PerkinElmer and IDEXX Laboratories (IDXX - Free Report) , each carrying a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

McKesson has a projected long-term earnings growth rate of 6.6%.

PerkinElmer has a projected long-term earnings growth rate of 19.5%.

IDEXX has an estimated long-term earnings growth rate of 15.8%.

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