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Becton Dickinson (BDX) Q2 Earnings and Revenues Top Estimates
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Becton, Dickinson and Company (BDX - Free Report) , also known as BD, reported second-quarter fiscal 2020 adjusted earnings per share (EPS) of $2.55, which beat the Zacks Consensus Estimate of $2.28 by 11.8%. The bottom line however dropped 1.5% on a year-over-year basis and fell 1.9% at constant currency (cc).
The company raked in revenues of $4.25 billion, surpassing the Zacks Consensus Estimate of $4.11 billion by 3.4%. The reported figure improved 1.4% from the year-ago quarter. At cc, revenues rose 2.4%.
Segment Details
BD Medical
In the quarter under review, the company reported worldwide revenues of $2.15 billion, down 1.4% from the year-ago quarter and 0.3% at cc. Per management, strong growth in the Pharmaceutical Systems and Diabetes Care units contributed to the upside. However, the segment's results were offset by year-over-year declines in the Medication Management Solutions and Medication Delivery Solutions units.
BD Life Science
Worldwide revenues in the segment totaled $1.11 billion, up 5.8% year over year and 7.1% at cc. Per management, the upside was driven by solid performance in the Diagnostic Systems and Preanalytical Systems units.
BD Interventional
This segment generated worldwide revenues of $0.99 billion, up 2.8% from the year-ago quarter. At cc, revenues grew 3.3% on strong performance by the Peripheral Intervention, Urology and Critical Care units.
Geographic Results
US
In the fiscal second quarter, revenues in the United States improved 3.2% to $2.41 billion. Per management, growth in the United States was driven by a solid show by the BD Life Sciences and the Interventional units. However, a decline in the Medical segment partially offset the upside.
Becton Dickinson and Company Price, Consensus and EPS Surprise
Revenues outside the United States grossed $1.84 billion, down 0.8% from the year-ago quarter. At cc, revenues at the segment grew 1.5%. Per management, International revenue growth was driven by strength in Europe and Latin America, offset by a decline in China.
Margin Analysis
In the quarter, gross profit amounted to $1.73 billion, down 12.2% from the prior-year quarter tally. Gross margin was 40.7%, down 631 bps from the prior-year quarter.
Adjusted operating profit amounted to $444 million, down 29.9% from the year-ago figure. Adjusted operating margin was 10.4%, down 465 bps.
Guidance
Due to ongoing uncertainty regarding the magnitude and extent of the COVID-19 pandemic, the company is withdrawing its fiscal year 2020 revenue and earnings per share guidance.
Wrapping Up
BD exited the fiscal second quarter on a strong note. Solid performance by the core BD Life Sciences and Interventional segments instills optimism. Domestic revenues increased year over year in the quarter under review, driven by segmental strength. Growth in Europe and Latin America is another positive.
Meanwhile, softness in the core BD Medical unit is disheartening. Also, the drop in gross and adjusted operating margins raises concern. Unfavorable foreign currency impacted 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 are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020.
Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Becton Dickinson (BDX) Q2 Earnings and Revenues Top Estimates
Becton, Dickinson and Company (BDX - Free Report) , also known as BD, reported second-quarter fiscal 2020 adjusted earnings per share (EPS) of $2.55, which beat the Zacks Consensus Estimate of $2.28 by 11.8%. The bottom line however dropped 1.5% on a year-over-year basis and fell 1.9% at constant currency (cc).
The company raked in revenues of $4.25 billion, surpassing the Zacks Consensus Estimate of $4.11 billion by 3.4%. The reported figure improved 1.4% from the year-ago quarter. At cc, revenues rose 2.4%.
Segment Details
BD Medical
In the quarter under review, the company reported worldwide revenues of $2.15 billion, down 1.4% from the year-ago quarter and 0.3% at cc. Per management, strong growth in the Pharmaceutical Systems and Diabetes Care units contributed to the upside. However, the segment's results were offset by year-over-year declines in the Medication Management Solutions and Medication Delivery Solutions units.
BD Life Science
Worldwide revenues in the segment totaled $1.11 billion, up 5.8% year over year and 7.1% at cc. Per management, the upside was driven by solid performance in the Diagnostic Systems and Preanalytical Systems units.
BD Interventional
This segment generated worldwide revenues of $0.99 billion, up 2.8% from the year-ago quarter. At cc, revenues grew 3.3% on strong performance by the Peripheral Intervention, Urology and Critical Care units.
Geographic Results
US
In the fiscal second quarter, revenues in the United States improved 3.2% to $2.41 billion. Per management, growth in the United States was driven by a solid show by the BD Life Sciences and the Interventional units. However, a decline in the Medical segment partially offset the upside.
Becton Dickinson and Company Price, Consensus and EPS Surprise
Becton Dickinson and Company price-consensus-eps-surprise-chart | Becton Dickinson and Company Quote
International
Revenues outside the United States grossed $1.84 billion, down 0.8% from the year-ago quarter. At cc, revenues at the segment grew 1.5%. Per management, International revenue growth was driven by strength in Europe and Latin America, offset by a decline in China.
Margin Analysis
In the quarter, gross profit amounted to $1.73 billion, down 12.2% from the prior-year quarter tally. Gross margin was 40.7%, down 631 bps from the prior-year quarter.
Adjusted operating profit amounted to $444 million, down 29.9% from the year-ago figure. Adjusted operating margin was 10.4%, down 465 bps.
Guidance
Due to ongoing uncertainty regarding the magnitude and extent of the COVID-19 pandemic, the company is withdrawing its fiscal year 2020 revenue and earnings per share guidance.
Wrapping Up
BD exited the fiscal second quarter on a strong note. Solid performance by the core BD Life Sciences and Interventional segments instills optimism. Domestic revenues increased year over year in the quarter under review, driven by segmental strength. Growth in Europe and Latin America is another positive.
Meanwhile, softness in the core BD Medical unit is disheartening. Also, the drop in gross and adjusted operating margins raises concern. Unfavorable foreign currency impacted 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 are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020.
Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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