We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BDX Stock Gains Following Q4 Earnings Beat and Higher Margins
Read MoreHide Full Article
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, delivered adjusted earnings per share (EPS) of $3.81 in the fourth quarter of fiscal 2024, up 11.4% year over year. The figure topped the Zacks Consensus Estimate by 1.1%.
The adjustments include expenses related to purchase accounting adjustments and integration costs, among others.
GAAP EPS for the quarter was $1.45, reflecting an improvement of 173.6% from the year-ago figure.
Full-year fiscal 2024 EPS was $13.14, reflecting a 7.6% uptick from the comparable fiscal 2023 period. The figure topped the Zacks Consensus Estimate by 0.2%.
BDX’s Revenues in Detail
BD registered revenues of $5.44 billion in the fiscal fourth quarter, up 6.9% year over year. The figure surpassed the Zacks Consensus Estimate by 1.6%.
At constant exchange rate (CER), revenues climbed 7.4%, while organic revenue change was 6.2% year over year.
Robust performances by all three segments drove the top-line improvement.
Full-year fiscal 2024 revenues were $20.18 billion, reflecting a 4.2% uptick both on a reported basis and at CER, 4.6% at adjusted CER and 5% organic from the comparable fiscal 2023 period. The figure topped the Zacks Consensus Estimate by 0.1%.
Adjusted revenues (excluding the recognition of accruals resulting from recent developments relating to the Italian government medical device payback legislation and another legal matter, and which substantially relate to years prior to the current fiscal year) were $20.25 billion in fiscal 2024.
Shares of this company gained nearly 1.5% in today’s pre-market trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BD’s Segment Details
BD’s operations consist of three worldwide business segments — BD Medical, BD Life Sciences and BD Interventional.
The BD Medical segment now consists of the Medication Delivery Solutions (MDS), Medication Management Solutions (MMS), Pharmaceutical Systems (PS) and the Advanced Patient Monitoring (APM) business unit, which was formed upon the closing of the acquisition of Critical Care from Edwards Lifesciences. The segment's performance includes the revenues of APM from Sept. 3, 2024 to Sept. 30, 2024.
In the quarter under review, BD Medical reported worldwide revenues of $2.84 billion, up 11.1% from the year-ago quarter on a reported basis, 11.5% at CER and 8.6% on an organic basis. Per management, the segment’s organic revenue growth was led by the MMS business unit. This compares to Zacks Consensus Estimate of fiscal fourth-quarter segmental revenues of $2.69 billion.
Worldwide revenues in the BD Life Sciences segment totaled $1.34 billion, up 0.7% year over year on a reported basis and 1.4% both at CER and on an organic basis. The segment’s performance was driven by the Integrated Diagnostic Solutions (IDS) business unit. This compares to Zacks Consensus Estimate of fiscal fourth-quarter segmental revenues of $1.38 billion.
BD Interventional segment generated worldwide revenues of $1.26 billion, up 4.7% from the year-ago quarter on a reported basis, 5.4% at CER and 6.6% on an organic basis. The segment’s organic revenue growth was driven by performance across the segment. This compares to the Zacks Consensus Estimate of fiscal fourth-quarter segmental revenues of $1.28 billion.
BDX’s Geographic Results
In the fourth quarter of fiscal 2024, revenues in the United States improved 8.3% to $3.12 billion. This compares to the Zacks Consensus Estimate of revenues of $3.01 billion.
International revenues grossed $2.32 billion, up 5.1% from the year-ago quarter on a reported basis and up 6.3% at CER. This compares to the Zacks Consensus Estimate of revenues of $2.32 billion.
Becton, Dickinson and Company Price, Consensus and EPS Surprise
In the quarter under review, BD’s gross profit increased 47.9% to $2.52 billion. The gross margin expanded a huge 1282 basis points (bps) to 46.3%. We had projected 40.9% of gross margin in the fourth quarter of fiscal 2024.
Selling and administrative expenses increased 10.5% to $1.26 billion. Research and development expenses increased 7.5% year over year to $302 million. Adjusted operating expenses of $1.56 billion rose 9.9% year over year.
Adjusted operating profit totaled $957 million, reflecting a 238.2% surge from the year-ago quarter. The adjusted operating margin in the fiscal fourth quarter expanded a huge 1204 bps to 17.6%.
BDX’s Financial Position
BD exited fiscal 2024 with cash and cash equivalents and short-term investments of $2.16 billion compared with $1.42 billion at fiscal 2023-end. Total debt (including current debt obligations) at the end of fiscal 2024 was $20.11 billion compared with $15.88 billion at fiscal 2023-end.
Cumulative net cash provided by continuing operating activities at the end of fiscal 2024 was $3.84 billion compared with $2.99 billion a year ago.
Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 4.54%.
BD’s Fiscal 2025 Guidance
BD has initiated its financial outlook for fiscal 2025.
BD projects its full fiscal year revenues between $21.9 billion and $22.1 billion (up 8.9-9.4% on a reported basis from the comparable fiscal 2024 period). The Zacks Consensus Estimate is pegged at $21.55 billion.
CER adjusted revenues are expected to reflect growth in the range of 8.8-9.3%, which includes the newly acquired APM business.
For fiscal 2025, organic revenue growth is expected to be between 4% and 4.5% from the comparable fiscal 2024 period.
For the full fiscal year, adjusted EPS is anticipated to be in the range of $14.25-$14.60 (representing growth of 8.5-11% from the comparable fiscal 2024 period). The Zacks Consensus Estimate is pegged at $14.30.
Our Take
BD exited the fourth quarter of fiscal 2024 with better-than-expected results. Solid top-line results, along with improvements in organic revenues and bottom-line performances, were impressive. Robust performances by all segments and both geographic regions were encouraging. Strength in BD’s segments' business units during the reported quarter was also promising. The expansion of both margins bodes well. Robust product adoption raises optimism.
Last month, BD’s Life Sciences segment’s IDS business unit announced Health Canada’s approval of the BD Onclarity HPV Assay for human papillomavirus (HPV) testing for use with self-collected vaginal specimens at home. The same month, the segment’s Biosciences (BDB) business unit announced a new robotics solution to automate and standardize single-cell research.
Apart from these, there were few other developments during the recent period like the BD Medical segment’s MDS business unit’s launch of the new BD Intraosseous Vascular Access System and the PS business unit’s capacity expansion of the BD Neopak Glass Prefillable Syringe platform. These look promising for the stock.
However, BD’s BDB and PS business units’ performances reflected transitory market dynamics that partially offset the respective revenues during the quarter. This was discouraging.
BDX’s Zacks Rank and Other Key Picks
BD currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated (DGX - Free Report) , ResMed Inc. (RMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Quest Diagnostics, carrying a Zacks Rank of 2, reported third-quarter 2024 adjusted EPS of $2.30, beating the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion outpaced the consensus mark by 3.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics has a long-term estimated growth rate of 6.5%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.4%.
ResMed reported first-quarter fiscal 2025 adjusted EPS of $2.20, beating the Zacks Consensus Estimate by 8.4%. Revenues of $1.22 billion surpassed the Zacks Consensus Estimate by 2.9%. It currently carries a Zacks Rank #2.
ResMed has a long-term estimated growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.4%.
Boston Scientific reported third-quarter 2024 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion surpassed the Zacks Consensus Estimate by 4.4%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.8%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
BDX Stock Gains Following Q4 Earnings Beat and Higher Margins
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, delivered adjusted earnings per share (EPS) of $3.81 in the fourth quarter of fiscal 2024, up 11.4% year over year. The figure topped the Zacks Consensus Estimate by 1.1%.
The adjustments include expenses related to purchase accounting adjustments and integration costs, among others.
GAAP EPS for the quarter was $1.45, reflecting an improvement of 173.6% from the year-ago figure.
Full-year fiscal 2024 EPS was $13.14, reflecting a 7.6% uptick from the comparable fiscal 2023 period. The figure topped the Zacks Consensus Estimate by 0.2%.
BDX’s Revenues in Detail
BD registered revenues of $5.44 billion in the fiscal fourth quarter, up 6.9% year over year. The figure surpassed the Zacks Consensus Estimate by 1.6%.
At constant exchange rate (CER), revenues climbed 7.4%, while organic revenue change was 6.2% year over year.
Robust performances by all three segments drove the top-line improvement.
Full-year fiscal 2024 revenues were $20.18 billion, reflecting a 4.2% uptick both on a reported basis and at CER, 4.6% at adjusted CER and 5% organic from the comparable fiscal 2023 period. The figure topped the Zacks Consensus Estimate by 0.1%.
Adjusted revenues (excluding the recognition of accruals resulting from recent developments relating to the Italian government medical device payback legislation and another legal matter, and which substantially relate to years prior to the current fiscal year) were $20.25 billion in fiscal 2024.
Shares of this company gained nearly 1.5% in today’s pre-market trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BD’s Segment Details
BD’s operations consist of three worldwide business segments — BD Medical, BD Life Sciences and BD Interventional.
The BD Medical segment now consists of the Medication Delivery Solutions (MDS), Medication Management Solutions (MMS), Pharmaceutical Systems (PS) and the Advanced Patient Monitoring (APM) business unit, which was formed upon the closing of the acquisition of Critical Care from Edwards Lifesciences. The segment's performance includes the revenues of APM from Sept. 3, 2024 to Sept. 30, 2024.
In the quarter under review, BD Medical reported worldwide revenues of $2.84 billion, up 11.1% from the year-ago quarter on a reported basis, 11.5% at CER and 8.6% on an organic basis. Per management, the segment’s organic revenue growth was led by the MMS business unit. This compares to Zacks Consensus Estimate of fiscal fourth-quarter segmental revenues of $2.69 billion.
Worldwide revenues in the BD Life Sciences segment totaled $1.34 billion, up 0.7% year over year on a reported basis and 1.4% both at CER and on an organic basis. The segment’s performance was driven by the Integrated Diagnostic Solutions (IDS) business unit. This compares to Zacks Consensus Estimate of fiscal fourth-quarter segmental revenues of $1.38 billion.
BD Interventional segment generated worldwide revenues of $1.26 billion, up 4.7% from the year-ago quarter on a reported basis, 5.4% at CER and 6.6% on an organic basis. The segment’s organic revenue growth was driven by performance across the segment. This compares to the Zacks Consensus Estimate of fiscal fourth-quarter segmental revenues of $1.28 billion.
BDX’s Geographic Results
In the fourth quarter of fiscal 2024, revenues in the United States improved 8.3% to $3.12 billion. This compares to the Zacks Consensus Estimate of revenues of $3.01 billion.
International revenues grossed $2.32 billion, up 5.1% from the year-ago quarter on a reported basis and up 6.3% at CER. This compares to the Zacks Consensus Estimate of revenues of $2.32 billion.
Becton, Dickinson and Company Price, Consensus and EPS Surprise
Becton, Dickinson and Company price-consensus-eps-surprise-chart | Becton, Dickinson and Company Quote
BD’s Margin Analysis
In the quarter under review, BD’s gross profit increased 47.9% to $2.52 billion. The gross margin expanded a huge 1282 basis points (bps) to 46.3%. We had projected 40.9% of gross margin in the fourth quarter of fiscal 2024.
Selling and administrative expenses increased 10.5% to $1.26 billion. Research and development expenses increased 7.5% year over year to $302 million. Adjusted operating expenses of $1.56 billion rose 9.9% year over year.
Adjusted operating profit totaled $957 million, reflecting a 238.2% surge from the year-ago quarter. The adjusted operating margin in the fiscal fourth quarter expanded a huge 1204 bps to 17.6%.
BDX’s Financial Position
BD exited fiscal 2024 with cash and cash equivalents and short-term investments of $2.16 billion compared with $1.42 billion at fiscal 2023-end. Total debt (including current debt obligations) at the end of fiscal 2024 was $20.11 billion compared with $15.88 billion at fiscal 2023-end.
Cumulative net cash provided by continuing operating activities at the end of fiscal 2024 was $3.84 billion compared with $2.99 billion a year ago.
Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 4.54%.
BD’s Fiscal 2025 Guidance
BD has initiated its financial outlook for fiscal 2025.
BD projects its full fiscal year revenues between $21.9 billion and $22.1 billion (up 8.9-9.4% on a reported basis from the comparable fiscal 2024 period). The Zacks Consensus Estimate is pegged at $21.55 billion.
CER adjusted revenues are expected to reflect growth in the range of 8.8-9.3%, which includes the newly acquired APM business.
For fiscal 2025, organic revenue growth is expected to be between 4% and 4.5% from the comparable fiscal 2024 period.
For the full fiscal year, adjusted EPS is anticipated to be in the range of $14.25-$14.60 (representing growth of 8.5-11% from the comparable fiscal 2024 period). The Zacks Consensus Estimate is pegged at $14.30.
Our Take
BD exited the fourth quarter of fiscal 2024 with better-than-expected results. Solid top-line results, along with improvements in organic revenues and bottom-line performances, were impressive. Robust performances by all segments and both geographic regions were encouraging. Strength in BD’s segments' business units during the reported quarter was also promising. The expansion of both margins bodes well. Robust product adoption raises optimism.
Last month, BD’s Life Sciences segment’s IDS business unit announced Health Canada’s approval of the BD Onclarity HPV Assay for human papillomavirus (HPV) testing for use with self-collected vaginal specimens at home. The same month, the segment’s Biosciences (BDB) business unit announced a new robotics solution to automate and standardize single-cell research.
Apart from these, there were few other developments during the recent period like the BD Medical segment’s MDS business unit’s launch of the new BD Intraosseous Vascular Access System and the PS business unit’s capacity expansion of the BD Neopak Glass Prefillable Syringe platform. These look promising for the stock.
However, BD’s BDB and PS business units’ performances reflected transitory market dynamics that partially offset the respective revenues during the quarter. This was discouraging.
BDX’s Zacks Rank and Other Key Picks
BD currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated (DGX - Free Report) , ResMed Inc. (RMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Quest Diagnostics, carrying a Zacks Rank of 2, reported third-quarter 2024 adjusted EPS of $2.30, beating the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion outpaced the consensus mark by 3.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics has a long-term estimated growth rate of 6.5%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.4%.
ResMed reported first-quarter fiscal 2025 adjusted EPS of $2.20, beating the Zacks Consensus Estimate by 8.4%. Revenues of $1.22 billion surpassed the Zacks Consensus Estimate by 2.9%. It currently carries a Zacks Rank #2.
ResMed has a long-term estimated growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.4%.
Boston Scientific reported third-quarter 2024 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion surpassed the Zacks Consensus Estimate by 4.4%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.8%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.