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Becton Dickinson (BDX) Earnings Surpass Estimates in Q1

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Becton, Dickinson and Company (BDX - Free Report) , also known as BD, reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of $4.55, which beat the Zacks Consensus Estimate of $3.14 by 44.9%. The bottom line also rose 71.7% on a year-over-year basis and grew 73.6% at constant currency (cc) as well.

Revenues

For the quarter, the company raked in revenues of $5.32 billion, beating the Zacks Consensus Estimate by a marginal 0.1%. Also, the top line grew 25.8% from the year-ago quarter on a reported basis and 24.3% on a currency-neutral basis.

Segment Details

BD Medical

For the quarter under review, the company reported worldwide revenues of $2.26 billion, up 8.2% from the year-ago quarter on a reported basis and 6.9% at cc,led by growth across all its four business units. Per management, this upside can be particularly attributed to growth in Medication Delivery Solutions and Medication Management Solutions business units. Also, consistent demand for its pre-fillable syringe portfolio drove the Pharmaceutical Systems unit.

BD Life Science

Worldwide revenues in the segment totaled $1.98 billion, up 76.2% year over year on a reported basis and 74.1% at cc. Per management, this upside was driven by strong sales associated with COVID-diagnostic testing solutions in the Diagnostic Systems unit on the BD Veritor Plus and BD Max platforms.

BD Interventional

This segment generated worldwide revenues of $1.08 billion, up 6.2% from the year-ago quarter on a reported basis and 5% at cc. This was owing to the segment's strong performance with respect to both elective and routine outpatient procedure volumes in the United States in the Surgery and Peripheral Intervention business units.

Geographic Results

US

In the fiscal first quarter, revenues in the United States grew 28.8% to $3.13 billion. Per management, solid performance in the United States reflects higher sales associated with COVID-testing solutions

International

Revenues outside the United States grossed $2.19 billion, up 21.8% from the year-ago quarter on reported basis and 18.2% on currency-neutral basis. Per management, this upside was driven by a strong performance in Europe in the BD Medical and BD Life Sciences segments.

 

Becton, Dickinson and Company Price, Consensus and EPS Surprise

Becton, Dickinson and Company Price, Consensus and EPS Surprise

 

Becton, Dickinson and Company price-consensus-eps-surprise-chart | Becton, Dickinson and Company Quote

 

Margin Analysis

In the fiscal first quarter, gross profit amounted to $2.7 billion, up 38.1% from the prior-year quarter’s tally. Gross margin was 51.4%, up 459 basis points (bps) from the prior-year quarter.

Adjusted operating profit amounted to $1.3 billion, up 120.1% from the year-ago figure. Adjusted operating margin was 24.3%, up 1042 bps.

Cash Position

The company exited the first quarter of fiscal 2021 with cash and cash equivalents amounting to $3.25 billion compared with $2.83 billion at the end of the fourth quarter of fiscal 2020.

Net cash provided by operating activities came in at $1.53 billion compared with $713 million in the year-ago period.

Fiscal 2021 Guidance

For the current fiscal year, revenues are projected to grow 12-14% on a reported basis and 10-12% on a currency-neutral basis. The company's previously issued guidance for revenue growth was in the high single-to-low double-digit range on a reported basis. The Zacks Consensus Estimate for the same is pegged at $19.24 billion.

For the full fiscal, adjusted EPS is estimated between $12.75 and $12.85 compared with the previously issued outlook of. $12.40-$12.60. The current projection also suggests growth of almost 25-26% from the prior fiscal year’s reported number. The Zacks Consensus Estimate for the same is pegged at $12.58.

Wrapping Up

BD exited the first quarter of fiscal 2021 on a strong note. Within the United States, the Diagnostic Systems unit witnessed strong revenue growth on frequent COVID-19 testing. Further, the company continues to see solid demand for its product portfolio that supports the global COVID-response efforts, especially the recent launch of its rapid point-of-care antigen test. It also saw revenue growth in each of its core segments. Both domestic and international revenues increased year over year in the quarter under review. A plethora of recent regulatory approvals instills optimism on the stock.

Additionally, expansion of both gross and adjusted operating margins is another positive.

However, unfavorable foreign currency affected BD’s quarterly bottom line.

Zacks Rank and Key Picks

BD currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that already announced quarterly results are PerkinElmer, Inc. (PKI - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each presently carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PerkinElmer reported fourth-quarter 2020 adjusted earnings per share (EPS) of $3.96, which beat the Zacks Consensus Estimate of $3.61 by 9.7%. Revenues of $1.36 billion too surpassed the consensus mark by 7.7%.  

Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.

AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of 2 cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.

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