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Becton, Dickinson (BDX) Beats Q2 Earnings on Solid Sales

Becton, Dickinson and Company BDX, popularly known as BD, reported second-quarter fiscal 2016 earnings of $2.18 per share, which beat the Zacks Consensus Estimate by 17 cents. Earnings surged 44.7% from the year-ago quarter on a currency-neutral basis. Including foreign currency effect, earnings increased 35.4% in the reported quarter.


Quarter Details

At currency-neutral basis, revenues surged 55.2% to $3.07 billion, which was slightly better than the Zacks Consensus Estimate of $3.06 billion. On a comparable (including Carefusion figures) and currency-neutral basis, revenues increased 1.8% from the year-ago quarter.

BD medical revenues grew 99.5% year over year on a currency-neutral basis to $2.14 billion. Medication and Procedural solution sales soared 53.2%, while Diabetes cure and Pharmaceutical revenues increased 3.6% and 11%, respectively. Medication management solutions and Respiratory solution (Carefusion’s division) revenues totaled $536 million and $213 million, respectively, in the reported quarter.

On a comparable and currency-neutral, BD medical revenues increased 6.1%, primarily driven by robust sales across most of the segments.

BD Lifesciences revenues increased 3.4% from the year-ago quarter to $936 million on a currency-neutral basis. Preanalytical Systems and Diagnostics Systems revenues advanced 5.7% and 4.6% on a year-over-year basis, respectively. BD Biosciences revenues declined 0.5% from the year-ago quarter.

Total safety revenues improved 38.8% year over year to $733 million. U.S. revenues increased 50.7%, while international revenues were up 25.1% from the year-ago quarter.

Geographically, U.S. revenues increased a strong 99.6% to roughly $1.72 billion, while International revenues were up 23% on a currency-neutral basis to $1.35 billion.


For fiscal 2016, on a comparable and currency-neutral basis, revenues are expected to increase approximately 24.5% to 25%. BD continues to estimate organic revenue growth of approximately 4.5% to 5%.

Meanwhile, adjusted earnings (on a currency-neutral basis) are expected in the range of $9.01 to $9.08, reflecting year-over-year growth of 26% to 27%.

Zacks Rank & Key Picks

Currently, Becton, Dickinson carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the same space include C.R. Bard BCR, CONMED Corp CNMD and Align Technology ALGN. All the three stocks carry a Zacks Rank #2 (Buy).

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