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Becton, Dickinson (BDX) Beats on Q2 Earnings, Lifts '18 View
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Becton, Dickinson and Company (BDX - Free Report) posted second-quarter fiscal 2018 earnings of $2.65 which beat the Zacks Consensus Estimate of $2.61. Earnings also improved 7.8% at constant currency (cc).
Becton Dickinson, also known as BD, posted revenues worth at $4.22 billion, surpassing the Zacks Consensus Estimate of $4.12 billion. Revenues rose 5.7% at cc. On a year-over-year basis, revenues surged 42.2% on the acquisition of C. R. Bard.
Meanwhile, BD’s shares have gained 25.2%, compared with the industry’s 12.6%.
BD currently carries a Zacks Rank #3 (Hold).
Becton, Dickinson and Company Price, Consensus and EPS Surprise
The segment posted worldwide revenues of $2.17 billion, up 4.2% at cc. Per management, the strong results were driven by strength in the Medication Delivery Solutions, Diabetes Care and Pharmaceutical Systems units.
BD Life Sciences
Worldwide revenues in this segment came in at $1.18 billion, reflecting an increase of 7.3% at cc.
Revenue growth reflects strong performance in the Diagnostic Systems and Biosciences units. However, growth in the Preanalytical Systems unit was negatively impacted by a production issue in one of its product lines which was resolved in the quarter.
The segment’s growth was aided by flu-related revenues in the Diagnostic Systems unit as a result of a stronger flu season in comparison to the prior year.
BD Interventional
In the reported quarter, this segment posted worldwide revenues of around $1 billion, up 7.1% at cc. The segment's results reflect strong performance by the Peripheral Intervention and Urology and Critical Care units and solid growth in the Surgery unit.
Geographic Results
US
Sales in the United States came in at $2.33 billion, up 4% at cc in the second quarter.
The BD Medical segment accounted for revenues of $1.18 billion in the United States.
BD Life Sciences accounted for $498 million of revenues, while BD Interventional recorded $649 million in the United States.
International
Sales outside the United States came in at $1.9 billion, up 7.9% at cc.
The upside was driven by strong performance by the BD Medical, BD Life Sciences and BD Interventional segments.
Internationally, BD Medical posted revenues worth $994 million. BD Life Sciences raked in international revenues of $600 million, while BD Interventional contributed $303 million.
Margin Analysis
In the reported quarter, gross profit totaled $1.6 billion, up 14.8% year over year.
BD posted operating income of $183 million, down 59% on a year-over-year basis.
Guidance
Buoyed by the solid fiscal second-quarter performance, BD raised its fiscal 2018 guidance. The company expects adjusted earnings per share within $10.9-$11.05 on an increase in the estimated benefit from foreign currency. This represents growth of approximately 15-16.5% over fiscal 2017. Notably, the Zacks Consensus Estimate for earnings per share of $10.95 lies within the range.
The company raised the revenue growth guidance for fiscal 2018 to 5-5.5%, which is also at a high end of the previous guidance.
Our Take
Becton, Dickinson ended the fiscal second quarter of 2018 on a promising note. Strong growth in BD Medical was primarily driven by Medication Delivery Solutions, Diabetes Care and Pharmaceutical Systems units. Meanwhile, the acquisition of C.R. Bard has proven accretive to fiscal second-quarter results. Internationally, BD posted strong revenues and has maintained its global foothold. However, declining margins raise concern. The recent product recalls and foreign exchange volatility are also likely to mar the company’s prospects.
Key Picks
A few better-ranked stocks in the broader medical space which have reported solid results this season are Intuitive Surgical (ISRG - Free Report) , Chemed Corporation (CHE - Free Report) and Baxter International Inc. (BAX - Free Report) . While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), Chemed and Baxter carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported first-quarter 2018 adjusted earnings per share of $2.44, which beat the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, also surpassing the consensus estimate by 10.6%.
Chemed posted first-quarter 2018 adjusted earnings per share of $2.72, surpassing the Zacks Consensus Estimate of $2.37. Revenues came in at $439.2 million, beating the Zacks Consensus Estimate of $420 million.
Baxter posted first-quarter 2018 adjusted earnings per share of 70 cents, which beat the Zacks Consensus Estimate by 12.9%. Revenues of $2.68 billion also edged past the Zacks Consensus Estimate of $2.62 billion.
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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Becton, Dickinson (BDX) Beats on Q2 Earnings, Lifts '18 View
Becton, Dickinson and Company (BDX - Free Report) posted second-quarter fiscal 2018 earnings of $2.65 which beat the Zacks Consensus Estimate of $2.61. Earnings also improved 7.8% at constant currency (cc).
Becton Dickinson, also known as BD, posted revenues worth at $4.22 billion, surpassing the Zacks Consensus Estimate of $4.12 billion. Revenues rose 5.7% at cc. On a year-over-year basis, revenues surged 42.2% on the acquisition of C. R. Bard.
Meanwhile, BD’s shares have gained 25.2%, compared with the industry’s 12.6%.
BD currently carries a Zacks Rank #3 (Hold).
Becton, Dickinson and Company Price, Consensus and EPS Surprise
Becton, Dickinson and Company Price, Consensus and EPS Surprise | Becton, Dickinson and Company Quote
Segment Details
BD Medical
The segment posted worldwide revenues of $2.17 billion, up 4.2% at cc. Per management, the strong results were driven by strength in the Medication Delivery Solutions, Diabetes Care and Pharmaceutical Systems units.
BD Life Sciences
Worldwide revenues in this segment came in at $1.18 billion, reflecting an increase of 7.3% at cc.
Revenue growth reflects strong performance in the Diagnostic Systems and Biosciences units. However, growth in the Preanalytical Systems unit was negatively impacted by a production issue in one of its product lines which was resolved in the quarter.
The segment’s growth was aided by flu-related revenues in the Diagnostic Systems unit as a result of a stronger flu season in comparison to the prior year.
BD Interventional
In the reported quarter, this segment posted worldwide revenues of around $1 billion, up 7.1% at cc. The segment's results reflect strong performance by the Peripheral Intervention and Urology and Critical Care units and solid growth in the Surgery unit.
Geographic Results
US
Sales in the United States came in at $2.33 billion, up 4% at cc in the second quarter.
The BD Medical segment accounted for revenues of $1.18 billion in the United States.
BD Life Sciences accounted for $498 million of revenues, while BD Interventional recorded $649 million in the United States.
International
Sales outside the United States came in at $1.9 billion, up 7.9% at cc.
The upside was driven by strong performance by the BD Medical, BD Life Sciences and BD Interventional segments.
Internationally, BD Medical posted revenues worth $994 million. BD Life Sciences raked in international revenues of $600 million, while BD Interventional contributed $303 million.
Margin Analysis
In the reported quarter, gross profit totaled $1.6 billion, up 14.8% year over year.
BD posted operating income of $183 million, down 59% on a year-over-year basis.
Guidance
Buoyed by the solid fiscal second-quarter performance, BD raised its fiscal 2018 guidance. The company expects adjusted earnings per share within $10.9-$11.05 on an increase in the estimated benefit from foreign currency. This represents growth of approximately 15-16.5% over fiscal 2017. Notably, the Zacks Consensus Estimate for earnings per share of $10.95 lies within the range.
The company raised the revenue growth guidance for fiscal 2018 to 5-5.5%, which is also at a high end of the previous guidance.
Our Take
Becton, Dickinson ended the fiscal second quarter of 2018 on a promising note. Strong growth in BD Medical was primarily driven by Medication Delivery Solutions, Diabetes Care and Pharmaceutical Systems units. Meanwhile, the acquisition of C.R. Bard has proven accretive to fiscal second-quarter results. Internationally, BD posted strong revenues and has maintained its global foothold. However, declining margins raise concern. The recent product recalls and foreign exchange volatility are also likely to mar the company’s prospects.
Key Picks
A few better-ranked stocks in the broader medical space which have reported solid results this season are Intuitive Surgical (ISRG - Free Report) , Chemed Corporation (CHE - Free Report) and Baxter International Inc. (BAX - Free Report) . While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), Chemed and Baxter carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported first-quarter 2018 adjusted earnings per share of $2.44, which beat the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, also surpassing the consensus estimate by 10.6%.
Chemed posted first-quarter 2018 adjusted earnings per share of $2.72, surpassing the Zacks Consensus Estimate of $2.37. Revenues came in at $439.2 million, beating the Zacks Consensus Estimate of $420 million.
Baxter posted first-quarter 2018 adjusted earnings per share of 70 cents, which beat the Zacks Consensus Estimate by 12.9%. Revenues of $2.68 billion also edged past the Zacks Consensus Estimate of $2.62 billion.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>