Core Insights - Becton Dickinson (BDX) reported quarterly earnings of $3.35 per share, exceeding the Zacks Consensus Estimate of $3.28 per share, and showing an increase from $3.17 per share a year ago, representing an earnings surprise of 2.13% [1] - The company posted revenues of $5.27 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 1.74%, but an increase from $5.05 billion year-over-year [2] - Becton Dickinson shares have declined approximately 8.7% since the beginning of the year, compared to a 5.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.56, with expected revenues of $5.51 billion, and for the current fiscal year, the EPS estimate is $14.42 on revenues of $21.86 billion [7] - The estimate revisions trend for Becton Dickinson is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Dental Supplies industry, to which Becton Dickinson belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The performance of Becton Dickinson may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 grew by 6% or 0.9% organically, which was below expectations, primarily due to market dynamics in Life Sciences and a slower return to normal levels in diagnostics [7][25] - Adjusted gross margins increased to 54.9%, up by 190 basis points year over year, reflecting strong margin performance driven by BD Excellence initiatives [9][28] - Adjusted diluted EPS for Q2 was $3.35, representing a growth of 5.7% [28] Business Line Data and Key Metrics Changes - Biosciences faced challenges due to reduced global research funding, impacting instrument sales, while reagent sales continued to grow [11][12] - Diagnostics experienced softness in the Bactech Blood Culture business, with a slower than expected return to prior testing levels [13][14] - The MedTech business saw organic growth of 1.9%, with strong performance in biologics and the PureWick product line [26][27] Market Data and Key Metrics Changes - Total company organic growth was led by the U.S., Greater Asia (excluding China), and Latin America, while EMEA experienced a decline and China saw a double-digit decrease [28] - The company adjusted its full-year revenue guidance to expect 3% to 3.5% organic growth due to market pressures [14] Company Strategy and Development Direction - The company is focused on reaccelerating organic sales growth through strategic investments and initiatives like BD Excellence, which aims to drive gross margin expansion and support growth investments [9][10][24] - The separation process for the Biosciences and Diagnostics business is on track, with strong interest in the assets [21][88] - The company plans to invest $2.5 billion in U.S. manufacturing over the next five years to strengthen its position in the medtech sector [17] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with the current quarter's top-line growth, which does not reflect the mid-single-digit growth achieved in previous years [8] - The operating environment remains dynamic, with ongoing adjustments to revenue guidance reflecting changes in research funding and market conditions [14][80] - Management remains confident in the company's ability to navigate macro challenges and deliver strong earnings growth despite external pressures [84] Other Important Information - The company expects total revenues for fiscal 2025 to be in the range of $21.8 billion to $21.9 billion, with an adjusted effective tax rate between 14% and 14.5% [31] - Tariff expenses are estimated at $90 million for FY 2025, with mitigation actions already in place to reduce near-term risks [19][32] Q&A Session Summary Question: Clarification on tariff impact - The $0.25 impact from tariffs is a net number after mitigation efforts, and while it cannot be simply annualized, some form of annualization is reasonable for fiscal 2026 [35][40] Question: Improvement in second half organic growth - The company expects Q3 organic growth to be around 3% and Q4 to improve further, driven by several key growth drivers and easier comparisons [41][51] Question: Breakdown of organic sales growth adjustments - The adjustment in organic sales growth guidance reflects market-driven impacts, particularly in China and the diagnostics business, with a significant portion attributed to changes in research funding [55][61] Question: Actions regarding tariffs and mitigation - The company is actively managing inventory positioning, exploring global sourcing options, and considering selective pricing to mitigate tariff impacts [66][72] Question: Confidence in guidance and execution - Management acknowledges the challenges in revenue guidance but emphasizes strong execution on earnings and the ability to navigate macro challenges effectively [76][84] Question: Status of Life Sciences separation - The separation process remains on schedule, with strong interest in the assets, and the company aims to maximize shareholder value through this process [87][88] Question: Internal optimization and employee capacity - The company is focused on balancing efficiency initiatives with employee engagement, ensuring that continuous improvement efforts enhance productivity without overwhelming staff [92][100] Question: Market intelligence and competitive analysis - The company has a central strategy group that gathers market intelligence, and it continuously evaluates its assumptions to stay ahead of market dynamics [105][106]

Financial Data and Key Metrics Changes - Revenues grew 6% or 0.9% organically, which was below expectations, primarily due to market dynamics in Life Sciences and a slower return to normal levels in blood culture testing [6][12] - Adjusted gross margins increased to 54.9%, up 190 basis points year over year, driven by BD Excellence initiatives [7][26] - Adjusted diluted EPS was $3.35, reflecting a growth of 5.7% [26][30] Business Line Data and Key Metrics Changes - Biosciences faced challenges due to reduced global research funding, impacting instrument sales, while reagent sales continued to grow [9][11] - Diagnostics experienced softness in the Bactech Blood Culture business, with a slower recovery in testing levels [11][12] - Farm Systems returned to growth in Q2, driven by biologics and increased orders for GLP-1s [13][24] Market Data and Key Metrics Changes - Total company organic growth was led by the U.S., Greater Asia (excluding China), and Latin America, while EMEA declined and China saw a double-digit decrease [24] - The company adjusted its full-year revenue guidance to expect 3% to 3.5% organic growth due to market dynamics [12][29] Company Strategy and Development Direction - The company is focused on navigating the near-term environment while positioning itself for long-term value through strategic investments [6][19] - BD plans to invest $2.5 billion in U.S. manufacturing over the next five years to strengthen its position in the healthcare system [15][18] - The separation process for the Biosciences and Diagnostics business is on track, with strong interest in the assets [19][85] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the volatility in research funding and its impact on sales, particularly in the Life Sciences segment [6][77] - The company remains committed to mitigating tariff impacts and expects to absorb $90 million in tariff expenses for FY 2025 [17][30] - Future guidance includes total revenue growth of 7.8% to 8.3% and organic growth of 3% to 3.5% for the remainder of the fiscal year [29][30] Other Important Information - BD Excellence initiatives are seen as a key driver for margin expansion and growth investments in R&D and commercial programs [8][22] - The company is actively managing its supply chain to mitigate tariff impacts and has implemented cost containment measures [18][72] Q&A Session Summary Question: Clarification on tariff impact - The $0.25 EPS impact from tariffs is a net number after mitigation efforts, and the situation remains fluid with ongoing adjustments [33][36] Question: Expectations for organic growth in the second half - The company expects organic growth to improve sequentially, with Q3 around 3% and Q4 expected to exceed 5% due to easier comparisons and key growth drivers [39][51] Question: Breakdown of organic sales growth adjustments - The adjustment reflects known headwinds in China and market-driven factors, with significant impacts from BDB and research spending [54][56] Question: Actions regarding tariffs and mitigation - The company is employing multiple strategies, including inventory positioning and sourcing alternatives, to mitigate tariff impacts [64][66] Question: Confidence in guidance amid market changes - Management acknowledged the challenges but emphasized strong execution on earnings and the ability to navigate macro dynamics effectively [75][82] Question: Update on Life Sciences separation process - The separation remains on schedule with strong interest in the assets, and details will be shared in the summer [85][86]

Q2 FY25 Performance - Revenue reached $5.3 billion, with a 6.0% increase on a currency-neutral (FXN) basis, and a 0.9% increase organically[23] - Adjusted diluted EPS was $3.35, a 5.7% year-over-year increase[23] - Adjusted operating margin improved by 60 bps year-over-year to 24.9%[23] - Operating cash flow year-to-date was $0.9 billion[23] - Free cash flow year-to-date decreased by 44% to $623 million, reflecting planned one-time cash payments[35] Segment Performance - BD Medical revenue was $2.76 billion, up 14.3% FXN and 3.6% organically[23] - BD Life Sciences revenue was $1.247 billion, down 2.4% FXN (all organic)[23] - BD Interventional revenue was $1.264 billion, down 1.1% FXN (all organic)[23] FY25 Guidance - Estimated total company revenue is projected to be approximately $21.8 billion to $21.9 billion[37] - Adjusted revenue growth (FXN) is expected to be 7.8% to 8.3%[37] - Organic revenue growth (FXN) is projected to be 3.0% to 3.5%, which includes absorbing an approximate 175 bps impact from an expected decline in China, as well as Biosciences and Pharmaceutical Systems market dynamics[37] - Adjusted diluted EPS is guided to be $14.06 to $14.34, representing a 7.0% to 9.1% increase compared to $13.14 in FY24, inclusive of an estimated tariff impact of (25¢)[37]

Revenue Performance - Revenue for Q2 fiscal 2025 was $5.3 billion, representing a 4.5% increase as reported, 6.0% currency-neutral, and 0.9% organic growth[4] - Revenues for Q2 2025 were $5,272 million, representing a 4.5% increase compared to $5,045 million in Q2 2024[28] - For the first six months of fiscal year 2025, revenues reached $10,440 million, a 7.1% increase from $9,751 million in the same period of 2024[29] - Total revenues for the first quarter of fiscal year 2025 reached $5,272 million, a 4.5% increase compared to $5,045 million in the same period of 2024[38] - Total revenues for the six months ended March 31, 2025, were $10,440 million, representing a 7.1% increase compared to $9,751 million in the same period of 2024[47] - In the United States, total revenues increased by 7.0% to $3,108 million from $2,906 million year-over-year[32] - International revenues showed a slight increase of 1.2% to $2,164 million compared to $2,139 million in the previous year[35] Segment Performance - BD Medical segment revenue grew by 12.7% to $2.76 billion, driven by strong performance in Medication Management Solutions[8] - BD Life Sciences segment reported a revenue decline of 4.3% to $1.25 billion, impacted by lower demand in Diagnostic Solutions[8] - BD Medical segment reported total revenues of $2,760 million, up 12.7% from $2,449 million year-over-year[38] - BD Life Sciences segment total revenues decreased by 4.3% to $1,247 million from $1,304 million in the previous year[38] - BD Interventional segment revenues declined by 2.2% to $1,264 million compared to $1,292 million in the same quarter of 2024[38] - BD Medical organic revenue for the three months ended March 31, 2025, was $2,503 million, reflecting a 2.2% increase from $2,449 million in 2024[50] - BD Medical segment revenues increased to $5,375 million, a 14.9% increase from $4,679 million in 2024, with Medication Delivery Solutions growing by 3.8%[47] - BD Life Sciences segment reported revenues of $2,545 million, a decrease of 1.8% from $2,592 million in 2024, with Biosciences declining by 5.2%[47] Earnings and Guidance - GAAP diluted EPS was $1.07, down 42.2% from the previous year, while adjusted diluted EPS increased by 5.7% to $3.35[6] - Adjusted diluted EPS guidance for fiscal 2025 is now projected to be between $14.06 and $14.34, indicating a year-over-year growth of approximately 7.0% to 9.1%[16] - Reported diluted earnings per share (EPS) for the three months ended March 31, 2025, was $1.07, down 42.2% from $1.85 in 2024[53] - The company expects FY 2025 reported revenue growth to be between +8.0% to +8.5%, with total revenues projected to be approximately $21.8 to $21.9 billion[58] - Organic revenue growth for FY 2025 is anticipated to be between +3.0% to +3.5%[58] - The company anticipates a reported percentage change in earnings of +7.0% to +9.1% for FY 2025[61] Costs and Expenses - Operating income for Q2 2025 decreased by 25.5% to $546 million from $734 million in Q2 2024[28] - Total operating costs and expenses for Q2 2025 were $4,725 million, an increase of 9.6% from $4,311 million in Q2 2024[28] - Cash and equivalents as of March 31, 2025, were $667 million, down from $1,717 million as of September 30, 2024[30] - The company reported a net cash provided by continuing operating activities of $857 million for the first six months of 2025[31] - Total assets decreased to $54,467 million as of March 31, 2025, from $57,286 million as of September 30, 2024[30] Strategic Initiatives - The company plans to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years to enhance its position in the medical device market[5] - The Advanced Patient Monitoring business unit launched the HemoSphere Alta™ Advanced Monitoring Platform, featuring AI-driven clinical decision support[5] - The company split its Integrated Diagnostic Solutions unit into two separate units to better align resources with business needs[33] - The company restructured its Life Sciences segment by splitting the Integrated Diagnostic Solutions unit into two distinct units to better align resources[48] Regulatory and Compliance Issues - The company received FDA clearance for the Phasix™ ST Umbilical Hernia Patch, marking a significant advancement in its product offerings[9] - BD was named to Fortune's 2025 list of America's Most Innovative Companies, ranking in the top 25% overall[9] - European regulatory initiative-related costs reached $104 million pre-tax, reflecting compliance efforts with new regulations[62] - The tax impact of specified items and other tax-related adjustments was ($297) million, influencing net earnings[61] - The company recorded $67 million in accruals impacting revenues due to legal matters and $175 million related to an SEC investigation[62] - Future costs for product remediation efforts included charges of $38 million to cost of products sold, indicating ongoing operational challenges[62] Challenges - The company faced significant challenges including macroeconomic conditions, supply chain disruptions, and competitive pressures impacting future performance[27] - Purchase accounting adjustments amounted to $1.503 billion pre-tax, impacting reported earnings significantly[61] - Integration costs incurred were $23 million pre-tax, while restructuring costs totaled $387 million pre-tax[61] - Transaction costs related to the Advanced Patient Monitoring acquisition were $48 million pre-tax, with financing costs recorded as ($8) million pre-tax[61] - Product, litigation, and other items accounted for $346 million pre-tax, affecting overall financial performance[62]

Revenue of $5.3 billion increased 4.5% as reported, 6.0% currency-neutral and 0.9% organic GAAP and adjusted diluted EPS of $1.07 and $3.35, respectively Company updates full-year fiscal 2025 guidance and provides estimated tariff impactFRANKLIN LAKES, N.J., May 1, 2025 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced results for its fiscal 2025 second quarter, which ended March 31, 2025."Amid a difficult operating environment impa ...

FRANKLIN LAKES, N.J., April 30, 2025 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced that it will present at the Bank of America Securities Health Care Conference on Tuesday, May 13, 2025 at 1:00 pm Eastern Time.The live webcast of BD's presentation can be accessed from the BD investor relations website, investors.bd.com. A replay of the event will be available on the same webpage following its conclusion.About BDBD is one of the l ...

Industry Overview - The Medical sector is experiencing a continued recovery in sales, with earnings increasing year over year by 4.7% on 9.4% higher revenues, although inflationary pressures and supply chain challenges persist [1][2] - The first-quarter earnings for the Medical sector are expected to improve by 35%, while sales are projected to increase by 7.8%, compared to the previous quarter's earnings growth of 13.4% and revenue growth of 9.4% [3] Medical Device Industry Insights - The medical device industry began 2025 with robust growth, driven by sustained demand for advanced healthcare solutions and the normalization of elective procedures, with the global market projected to reach $1.3 trillion by 2029 [4] - Challenges such as semiconductor shortages and workforce shortages in AI and robotics are impacting production and innovation [5] - Trade tensions, particularly U.S.-China tariffs, have increased operational costs for medical device manufacturers, with 75% of U.S.-marketed medical devices manufactured abroad [6] Company Performance Expectations - Becton Dickinson is expected to report strong second-quarter results, with a projected revenue growth of 16.3% year over year in its Medical division, although a slight dip of 1.3% is anticipated in the Life Sciences segment [8] - Cardinal Health is expected to show steady performance in its Pharmaceutical and Specialty Solutions segment, supported by strategic acquisitions, despite the impact of a key customer contract expiration [10] - Baxter International is projected to report moderate growth, with an estimated 6.6% sales growth in its Medical Products & Therapies segment, aided by operational recovery [11] - DexCom's outlook remains promising, with a full-year revenue guidance of $4.6 billion, driven by expanded U.S. prescriber coverage and strong international performance [12] - Stryker Corporation is expected to show strong growth across multiple segments, with projected U.S. and international sales reaching $4.74 billion and $1.59 billion, respectively [13]

Core Viewpoint - Becton Dickinson and Company (BDX) is set to report its second-quarter fiscal 2025 results, with expectations of revenue growth driven by advancements in its medical segments and product adoption, despite some challenges in the market [1][11]. Group 1: BD Medical Segment - The BD Medical segment is expected to see significant revenue growth, with estimates of $2.85 billion, reflecting a 16.3% year-over-year increase, aided by the adoption of the BD PIVO Pro Needle-free Blood Collection Device [4][2]. - Management has made progress in the Connected Care strategy and received FDA clearance for new monitoring devices, which is likely to enhance revenue in this segment [3]. Group 2: BD Life Sciences Segment - The BD Life Sciences segment's revenues are estimated at $1.29 billion, a slight decline of 1.3% year-over-year, influenced by the expansion of fingertip blood testing and the success of the BD Onclarity HPV Assay [7][6]. - The segment is advancing in the high-volume molecular testing market, which is expected to contribute positively to revenues [6]. Group 3: BD Interventional Segment - The BD Interventional segment is projected to generate $1.33 billion in revenue, up 2.8% year-over-year, supported by ongoing product adoption and new applications in advanced tissue regeneration [10][9]. - The segment has received EU approval for new products, which is expected to drive further growth [8]. Group 4: Overall Financial Estimates - The overall revenue consensus estimate for the second quarter is $5.37 billion, indicating a 6.4% increase from the previous year, with EPS expected to rise by 3.5% to $3.28 [11]. Group 5: Valuation and Market Performance - BD's forward 12-month price-to-earnings (P/E) ratio is 13.6X, which is below the industry average of 16.6X, suggesting a potential undervaluation relative to peers [20][21]. - Over the past three months, BD's shares have declined by 16.3%, underperforming both the medical supplies sector and the broader market [14][18]. Group 6: Long-Term Prospects - The company is investing in its U.S. manufacturing network to enhance capacity for critical medical devices, which is expected to benefit the Medication Delivery Solutions business in the long term [22]. - BD's collaboration with Biosero aims to enhance drug discovery processes, indicating a commitment to innovation and growth in the Life Sciences segment [23].

Analysts on Wall Street project that Becton Dickinson (BDX) will announce quarterly earnings of $3.28 per share in its forthcoming report, representing an increase of 3.5% year over year. Revenues are projected to reach $5.37 billion, increasing 6.4% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this ...