Monty Rakusen Becton, Dickinson and Company (NYSE:BDX) has made impressive gains overall over the last three weeks, rising from a low of $218.75 on July 10, 2024 to close at $241.87 on August 2, 2024. Although much of the market also made big gains during those days, it is nevertheless significant that BDX continued to go up on August 2 when the S&P 500 and most stocks overall fell in reaction to an underwhelming jobs report for July. Last Friday, August 2, the Dow was down by 1.5%, the S&P 500 index by 1.8 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-4802 Becton, Dickinson and Company (Exact name of registrant as specified in its charter) New Jersey 22-0760120 (State or other j ...

Becton, Dickinson and Company (BDX) , popularly known as BD, delivered adjusted earnings per share (EPS) of $3.50 in the third quarter of fiscal 2024, up 18.2% year over year. The figure topped the Zacks Consensus Estimate by 5.7%. The adjustments include expenses related to purchase accounting adjustments and integration costs, among others. GAAP EPS for the quarter was $1.68, reflecting an improvement of 23.5% from the year-earlier figure. Revenues in Detail BD registered revenues of $4.99 billion in the ...

Financial Data and Key Metrics Changes - The company reported a mid-single-digit organic revenue growth of 5.2% for Q3 2024, driven by strong volume and share gains across the portfolio [5][21] - Adjusted gross margin increased to 54.3%, and adjusted operating margin rose to 25.2%, reflecting a year-over-year increase of 170 basis points and 220 basis points respectively [24] - Adjusted diluted EPS grew by 18.2% year-over-year, reaching $3.50 [24] Business Line Data and Key Metrics Changes - BD Medical segment growth was led by strong performance in infusion systems, particularly the BD Alaris, which returned to market [21] - Pharmaceutical Systems experienced double-digit growth in prefilled devices for biologic drugs, primarily GLP-1s, despite some transitory market dynamics [22][13] - BD Life Sciences saw high single-digit growth in specimen management, although it faced lower market demand for instruments due to transitory dynamics [22] - BD Interventional reported high single-digit growth in UCC, with continued double-digit growth in the PureWick franchise [23] Market Data and Key Metrics Changes - Over 90% of the company's revenue grew by more than 6% organically across its three largest geographies, although there was a decrease in China due to ongoing market dynamics [21] - The company noted strong volume growth in MDS in China, despite price pressure from VBP dynamics [65] Company Strategy and Development Direction - The company is advancing its BD 2025 strategy, focusing on growth through innovation and tuck-in M&A, simplification through BD Excellence, and empowering the organization [6][19] - The acquisition of Critical Care is expected to enhance the connected care strategy and contribute to margin and earnings growth [7] - The company aims to expand its healthcare automation and informatics AI business to over $5 billion, with a long-term view of exceeding $7 billion by 2030 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform market dynamics and achieve strong financial performance in FY '25, despite ongoing challenges in certain markets [28][29] - The company anticipates continued strong performance in the connected medication management portfolio, particularly with Alaris, and expects to exceed its adjusted operating margin goal of 25% [28][37] Other Important Information - The company has achieved over 100% year-to-date growth in free cash flow, with a conversion rate above 80% [6][25] - The company is on track to reduce its manufacturing network by over 20% and is investing in smart factories to enhance productivity [18][19] Q&A Session Summary Question: Guidance for Q4 and revenue expectations - Management indicated that Q4 revenue guidance implies upper 6% organic growth, driven by continued momentum from Alaris and favorable comparisons from the previous year [30][33] Question: Revenue growth drivers beyond Alaris - Management highlighted strong growth in consumables and upcoming product launches, including the next-generation Pyxis platform, as key growth drivers beyond Alaris [52][53] Question: Dynamics in China and market recovery - Management noted that while there are transitory dynamics affecting performance in China, they expect long-term recovery in research investment and continued strong volume growth in MDS [64][65]

Becton Dickinson (BDX) reported $4.99 billion in revenue for the quarter ended June 2024, representing a yearover-year increase of 2.3%. EPS of $3.50 for the same period compares to $2.96 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $5.07 billion, representing a surprise of -1.57%. The company delivered an EPS surprise of +5.74%, with the consensus EPS estimate being $3.31. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Becton Dickinson (BDX) came out with quarterly earnings of $3.50 per share, beating the Zacks Consensus Estimate of $3.31 per share. This compares to earnings of $2.96 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.74%. A quarter ago, it was expected that this medical device manufacturer would post earnings of $2.96 per share when it actually produced earnings of $3.17, delivering a surprise of 7.09%. Over the last four qu ...

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Q3 FY2024 Financial Highlights](index=1&type=section&id=Q3%20FY2024%20Financial%20Highlights) BD reported strong Q3 FY2024 results with adjusted revenue of $5.1 billion and adjusted diluted EPS of $3.50, driven by margin execution and organic growth, and over 100% year-to-date free cash flow growth Q3 FY2024 Key Financial Metrics | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue (Reported)** | $5.0 billion | $4.88 billion | 2.3% | | **Adjusted Revenue** | $5.1 billion | $4.88 billion | 3.7% | | **GAAP Diluted EPS** | $1.68 | $1.36 | 23.5% | | **Adjusted Diluted EPS** | $3.50 | $2.96 | 18.2% | - Year-to-date cash flow demonstrated significant improvement: - Cash from Continuing Operations grew **60% to $2.7 billion** - Free Cash Flow grew **over 100% to $2.2 billion**, an increase of **$1.2 billion** from the prior year[1](index=1&type=chunk) [Recent Business and Corporate Sustainability Highlights](index=1&type=section&id=Recent%20Business%20and%20Corporate%20Sustainability%20Highlights) Key strategic developments include acquiring Edwards Lifesciences' Critical Care Product Group for $4.2 billion, FDA approval for cervical cancer screening, and surpassing GHG emissions reduction targets - Announced a definitive agreement to acquire Edwards Lifesciences' Critical Care Product Group for **$4.2 billion** to enhance its portfolio of smart connected care and AI-based technologies[2](index=2&type=chunk) - BD Life Sciences received U.S. FDA approval for self-collection of samples for cervical cancer screening in a healthcare setting[2](index=2&type=chunk) - Commercially launched the BD Rhapsody™ ATAC-Seq Assay, expanding single-cell capabilities into the epigenomics research market[3](index=3&type=chunk) - Surpassed its Scope 1 and 2 science-based greenhouse gas (GHG) emissions reduction targets for FY 2023 by **5 percentage points**, achieving an **18% reduction** versus its fiscal 2019 baseline[3](index=3&type=chunk) [Detailed Financial Results (Q3 FY2024)](index=3&type=section&id=Detailed%20Financial%20Results%20(Q3%20FY2024)) [Overall Operating and Geographic Results](index=3&type=section&id=Overall%20Operating%20and%20Geographic%20Results) Q3 FY2024 adjusted revenues reached $5.06 billion, a 3.7% increase, driven by 4.5% growth in the U.S. market and 2.6% internationally Q3 FY2024 Adjusted Revenue by Geography (in millions) | Region | Q3 2024 | Q3 2023 | Reported Change | Currency Neutral Change | | :--- | :--- | :--- | :--- | :--- | | **United States** | $2,897 | $2,772 | 4.5% | 4.5% | | **International** | $2,160 | $2,106 | 2.6% | 4.0% | | **Total Adjusted Revenues** | **$5,057** | **$4,878** | **3.7%** | **4.3%** | [Segment Performance](index=5&type=section&id=Segment%20Performance) All segments contributed to Q3 FY2024 organic growth, with BD Medical up 5.6%, BD Interventional up 6.4%, and BD Life Sciences up 3.5% Q3 FY2024 Revenue by Segment (in millions) | Segment | Q3 2024 Revenue | Reported Change | Organic Revenue Change | | :--- | :--- | :--- | :--- | | **BD Medical** | $2,558 | 5.1% | 5.6% | | **BD Life Sciences** | $1,260 | 2.7% | 3.5% | | **BD Interventional** | $1,240 | 1.8% | 6.4% | | **Total Adjusted Revenues** | **$5,057** | **3.7%** | **5.2%** | [BD Medical](index=5&type=section&id=BD%20Medical) BD Medical's revenue growth was driven by Medication Management Solutions and Medication Delivery Solutions, partially offset by China market dynamics and Pharmaceutical Systems de-stocking - Medication Management Solutions (MMS) performance was driven by **high double-digit growth in Infusion**, particularly from BD Alaris™ and higher utilization of infusion sets[6](index=6&type=chunk) - Medication Delivery Solutions (MDS) saw **strong volume growth** and increased market position in Vascular Access Management, though partially offset by anticipated market dynamics in China[6](index=6&type=chunk) - Pharmaceutical Systems (PS) performance was affected by customer inventory de-stocking in anti-coagulants and vaccines, which offset **strong double-digit growth in Biologics and GLP-1s**[6](index=6&type=chunk) [BD Life Sciences](index=5&type=section&id=BD%20Life%20Sciences) BD Life Sciences' growth was led by Integrated Diagnostic Solutions' Specimen Management, while Biosciences performance was impacted by lower instrument demand - Growth was driven by the Integrated Diagnostic Solutions (IDS) business unit, which saw **high-single digit growth in Specimen Management**[7](index=7&type=chunk) - Biosciences (BDB) performance was impacted by lower market demand for instruments, which was partially offset by growth in clinical reagents[7](index=7&type=chunk) [BD Interventional](index=5&type=section&id=BD%20Interventional) BD Interventional delivered strong organic growth across Surgery, Peripheral Intervention, and Urology & Critical Care, with double-digit increases in key platforms - Surgery performance reflected **double-digit organic growth** across Advanced Repair & Reconstruction, Infection Prevention, and Biosurgery platforms[8](index=8&type=chunk) - Peripheral Intervention (PI) performance was led by **double-digit growth** in the Peripheral Vascular Disease portfolio[8](index=8&type=chunk) - Urology & Critical Care (UCC) performance was highlighted by **strong double-digit growth** in the PureWick™ franchise[8](index=8&type=chunk) [Fiscal Year 2024 Outlook](index=5&type=section&id=Fiscal%20Year%202024%20Outlook) [Updated Guidance](index=5&type=section&id=Updated%20Guidance) BD updated its FY2024 guidance, lowering organic revenue growth to 5.0-5.25% due to market dynamics, but increasing adjusted diluted EPS to $13.05-$13.15 due to strong margin performance Fiscal 2024 Guidance Update | Metric | New Guidance (Aug 1, 2024) | Previous Guidance (May 2, 2024) | | :--- | :--- | :--- | | **Organic Revenue Growth (FXN)** | 5.0% to 5.25% | 5.5% to 6.25% | | **Adjusted Diluted EPS** | $13.05 to $13.15 | $12.95 to $13.15 | | **Adjusted Diluted EPS Growth** | 6.9% to 7.7% | 6.1% to 7.7% | [Financial Statements](index=12&type=section&id=Financial%20Statements) [Condensed Consolidated Income Statements](index=12&type=section&id=Condensed%20Consolidated%20Income%20Statements) For Q3 FY2024, BD reported revenues of $4.99 billion and net income of $487 million, with nine-month revenues at $14.74 billion and net income of $1.31 billion Income Statement Summary - Three Months Ended June 30 (in millions) | Account | 2024 | 2023 | | :--- | :--- | :--- | | **Revenues** | $4,990 | $4,878 | | **Operating Income** | $602 | $549 | | **Net Income** | $487 | $407 | | **Diluted EPS** | $1.68 | $1.36 | Income Statement Summary - Nine Months Ended June 30 (in millions) | Account | 2024 | 2023 | | :--- | :--- | :--- | | **Revenues** | $14,741 | $14,285 | | **Operating Income** | $1,775 | $1,762 | | **Net Income** | $1,305 | $1,376 | | **Diluted EPS** | $4.49 | $4.60 | [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets were $55.58 billion, with cash and equivalents at $4.46 billion, total liabilities at $29.71 billion, and shareholders' equity at $25.87 billion Balance Sheet Summary (in millions) | Account | June 30, 2024 | Sept 30, 2023 | | :--- | :--- | :--- | | **Cash and equivalents** | $4,459 | $1,416 | | **Total Current Assets** | $12,207 | $8,676 | | **Total Assets** | $55,582 | $52,780 | | **Long-term debt** | $18,131 | $14,738 | | **Total Shareholders' Equity** | $25,868 | $25,796 | [Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2024, net cash from continuing operating activities increased 60% to $2.67 billion, resulting in free cash flow of $2.24 billion, up 106.2% year-over-year Cash Flow Summary - Nine Months Ended June 30 (in millions) | Account | 2024 | 2023 | | :--- | :--- | :--- | | **Net Cash from Continuing Operating Activities** | $2,666 | $1,665 | | **Capital Expenditures** | ($429) | ($580) | | **Net Cash Used for Investing Activities** | ($1,577) | ($853) | | **Net Cash Provided by (Used for) Financing Activities** | $1,963 | ($959) | Free Cash Flow Reconciliation - Nine Months Ended June 30 (in millions) | Metric | 2024 | 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Free Cash Flow** | $2,237 | $1,085 | $1,152 | 106.2% | [Supplemental Information and Reconciliations](index=16&type=section&id=Supplemental%20Information%20and%20Reconciliations) [Reconciliation of Non-GAAP Measures](index=22&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Q3 reported revenue growth of 2.3% was adjusted to an organic growth rate of 5.2%, and reported diluted EPS of $1.68 was adjusted to $3.50 for various items - The reconciliation from reported revenue to organic revenue for Q3 shows adjustments for legal matters (**+$67 million**) and inorganic divestitures (**-$43 million**), resulting in an organic revenue growth rate of **5.2%**[42](index=42&type=chunk) Q3 FY2024 EPS Reconciliation (Reported to Adjusted) | Description | Per Share Amount | | :--- | :--- | | **Reported Diluted EPS** | **$1.68** | | Purchase accounting adjustments | $1.21 | | Restructuring costs | $0.33 | | Product, litigation, and other items | $0.60 | | Other adjustments (net) | ($0.32) | | **Adjusted Diluted EPS** | **$3.50** |

Core Insights - The company reported a revenue of $5.0 billion for the third quarter of fiscal 2024, with adjusted revenue reaching $5.1 billion, reflecting strong organic revenue growth [1][3] - GAAP diluted EPS was $1.68, marking a 23.5% increase, while adjusted diluted EPS was $3.50, up 18.2% [1][3] - Year-to-date cash from continuing operations increased by 60% to $2.7 billion, and free cash flow more than doubled to $2.2 billion [1] - The company updated its fiscal 2024 GAAP revenue growth guidance to approximately 3.7% and organic revenue growth guidance to 5.0% to 5.25% [1][10] - Adjusted diluted EPS guidance for fiscal 2024 was raised by 5 cents to a range of $13.05 to $13.15 [1][10] Financial Performance - Total revenues for the three months ended June 30, 2024, were $4,990 million, a 2.3% increase from $4,878 million in the same period of 2023 [3][11] - Adjusted revenues for the same period were $5,057 million, reflecting a 3.7% increase [3][11] - The company achieved a reported operating income of $602 million, up 9.7% from $549 million year-over-year [12] - Net income for the quarter was $487 million, a 19.6% increase compared to $407 million in the prior year [12] Segment Performance - BD Medical segment revenues were $2,558 million, a 5.1% increase from $2,434 million in the previous year [5][18] - BD Life Sciences segment revenues totaled $1,260 million, reflecting a 2.7% increase from $1,226 million [5][18] - BD Interventional segment revenues were $1,240 million, up 1.8% from $1,218 million [5][18] Geographic Results - Revenues from the United States were $2,891 million, a 4.3% increase from $2,772 million in the prior year [4][16] - International revenues were $2,098 million, showing a slight decline of 0.3% from $2,106 million [4][16] Strategic Developments - The company announced a definitive agreement to acquire Edwards Lifesciences' Critical Care Product Group for $4.2 billion, enhancing its portfolio in smart connected care solutions and AI-based technologies [2] - BD Life Sciences received FDA approval for self-collection of samples for cervical cancer screening [2] - The company issued its Fiscal Year 2023 Corporate Sustainability Report, surpassing its greenhouse gas emissions reduction targets by 5 percentage points [2]

Let's check out the factors that have shaped BDX's performance prior to this announcement. In April, BD's Biosciences business unit announced the global commercial release of the three- and four-laser additions to the BD FACSDiscover S8 Cell Sorter family, which complement the five-laser instrument launched last year. In February, BD announced a strategic partnership with Camtech Health to increase access to cervical cancer screening in Singapore through the country's first-ever program to offer at-home sel ...

Core Insights - BD and Quest Diagnostics have entered a global collaboration to develop, manufacture, and commercialize flow cytometry-based companion diagnostics aimed at improving treatment selection for cancer and other diseases [1][2]. Company Overview - BD is a leading global medical technology company with over 70,000 employees, focused on advancing health through innovative technology and solutions [5]. - Quest Diagnostics is a major player in diagnostic information services, serving one in three adult Americans and half of the physicians and hospitals in the U.S. with nearly 50,000 employees [6]. Collaboration Details - The collaboration will provide the pharmaceutical industry with an end-to-end solution for companion diagnostics, covering everything from exploratory panel development to the manufacturing and distribution of FDA-approved diagnostic kits [2][4]. - The partnership combines BD's expertise in flow cytometry with Quest's capabilities in biomarker and assay development, aiming to bring novel companion diagnostics to market [3][4]. Technology and Impact - Flow cytometry is highlighted as a critical technology that can rapidly analyze and sort individual cells, providing insights into patients' immune responses and aiding in the selection of first-line therapies for cancer patients [3]. - The use of companion diagnostics is expected to enhance patient outcomes and reduce healthcare costs by enabling more precise healthcare [4].