Core Insights - The article discusses Becton, Dickinson and Company (BDX) following its Q1-2025 earnings report, indicating that the stock was trading at approximately $206 per share and was perceived as undervalued and poised for growth [1]. Company Analysis - Becton, Dickinson and Company (BDX) is highlighted for its potential investment opportunity based on its recent earnings performance [1]. Analyst Background - The author has a master's degree in Analytics and a bachelor's degree in Accounting, with over 10 years of experience in the investment field, starting as an analyst and advancing to a management role [1].

Core Insights - Becton, Dickinson and Company (BDX) met Wall Street's revenue expectations for Q3 CY2025, achieving sales of $5.89 billion, reflecting an 8.3% year-on-year growth [1][3] - The company's non-GAAP profit was $3.96 per share, exceeding analysts' consensus estimates by 1.2% [1][6] - Management highlighted strong demand in Interventional, Biologics, and Advanced Patient Monitoring segments as key drivers of organic growth, despite challenges in vaccine demand and research funding [3][5] Financial Performance - Revenue for Q3 was $5.89 billion, slightly below analyst estimates of $5.91 billion, but still showing an 8.3% year-on-year growth [6] - Adjusted EPS was $3.96, beating analyst estimates of $3.91 by 1.2% [6] - Adjusted EBITDA stood at $1.78 billion, maintaining a 30.2% margin, in line with expectations [6] - Operating margin was reported at 11.8%, consistent with the same quarter last year [6] - Market capitalization reached $50.84 billion [6] Future Outlook - The company is adopting a cautious approach to ongoing headwinds in vaccines, China, and the Alaris pump segment, focusing on reallocating resources to high-growth and high-margin areas [4] - CEO Thomas Polen indicated plans for mid-single-digit growth in 90% of the portfolio unaffected by current macro pressures, alongside investments in commercial and innovation initiatives [4] - A $200 million cost reduction program is being executed, with a focus on internal investment and share repurchases [4]

Core Insights - Dividend Kings are stocks that have consistently increased their dividend payouts for 50 consecutive years or more [1] Company Highlights - Examples of Dividend Kings include Target (NYSE:TGT), Becton Dickinson (NYSE:BDX), and Hormel Foods (NYSE:HRL) [1]

Core Insights - Becton, Dickinson and Company (BDX) reported adjusted earnings per share (EPS) of $3.96 for Q4 fiscal 2025, marking a 3.9% increase year over year and exceeding the Zacks Consensus Estimate by 1% [1][9] - The company's revenues for Q4 reached $5.89 billion, reflecting an 8.3% year-over-year growth, also surpassing the Zacks Consensus Estimate by 0.04% [3][4] Financial Performance - Full-year adjusted EPS was $14.40, a 9.6% increase from the previous year [2] - Q4 GAAP EPS was $1.72, showing a significant increase of 24.6% from the same quarter last year [1] - Gross profit for Q4 increased by 12.5% to $2.79 billion, with gross margin expanding by 176 basis points to 47.5% [11] Revenue Breakdown - BD Medical segment reported revenues of $3.16 billion for Q4, up 11.2% year over year [6] - BD Life Sciences segment generated $1.37 billion in revenues, reflecting a 2.1% increase year over year [7] - BD Interventional segment also reported $1.37 billion in revenues, up 8.5% from the previous year [8] Geographic Performance - U.S. revenues improved by 9.8% year over year to $3.42 billion [10] - International revenues reached $2.47 billion, up 6.4% year over year [10] Margin and Expense Analysis - Adjusted operating profit for Q4 was $1.11 billion, a 19.5% increase from the previous year [12] - Selling and administrative expenses rose by 8.8% to $1.37 billion, while R&D expenses increased by 6.6% to $322 million [11] Financial Position - At the end of Q4, cash and cash equivalents totaled $649 million, down from $757 million in the previous quarter [13] - Total debt decreased slightly to $19.18 billion from $19.34 billion [13] Future Guidance - For fiscal 2026, BDX projects revenue growth above low single-digit on a reported basis and anticipates adjusted EPS in the range of $14.75-$15.05 [15] Recent Developments - The company launched the BD Incada Connected Care Platform and formed a pharmacy automation partnership with Henry Ford Health [17] - BD Life Sciences announced a new self-collection solution for HPV testing in markets outside the U.S. [17] - However, there were challenges due to lower market demand for vaccine products and ongoing market dynamics in China [18]

Core Insights - Becton Dickinson and Co (BDX) reported fourth-quarter adjusted earnings of $3.96, surpassing the consensus estimate of $3.92 [1] - The company is facing challenges, with third-quarter 2025 sales of $5.89 billion, slightly below the consensus of $5.90 billion, but revenues increased by 8.3% as reported [2] Financial Performance - Medical segment sales rose by 11.2% to $3.16 billion, with a 4% organic growth [3] - Life Sciences sales reached $1.37 billion, up 2.1% [5] - Interventional sales increased by 8.5% to $1.37 billion [6] - The company declared a quarterly dividend of $1.05 per share, marking a 1.0% increase [9] Segment Analysis - Medication Delivery Solutions showed strong growth, particularly in Vascular Access Management, despite some volume-based procurement challenges in China [3] - Pharmaceutical Systems experienced high single-digit growth in Biologics, offset by lower vaccine demand, with notable performance from the HemoSphere Alta Monitor and Acumen IQ sensors [4] - Surgery segment reported double-digit growth in Advanced Tissue Regeneration and Biosurgery, while Urology and Critical Care saw strong growth in the PureWick franchise [7][8] Guidance and Future Outlook - For fiscal 2026, BDX expects adjusted earnings between $14.75 and $15.05 per share, above the consensus of $14.38, with low single-digit revenue growth anticipated [10] - The company expects first-quarter revenue growth to decline in low single digits, with adjusted earnings projected between $2.75 and $2.85 [10] - BDX plans to use at least half of the $4 billion cash distribution from the Waters RMT transaction for share repurchases [12] Strategic Developments - In July, BDX announced a merger of its Biosciences & Diagnostic Solutions business with Waters Corp, valued at approximately $17.5 billion, expected to close by the end of Q1 2026 [11]

Financial Data and Key Metrics Changes - Q4 revenue reached $5.9 billion, representing a 7% increase and 3.9% organic growth, while full-year revenue was a record $21.8 billion, up 7.7% and 2.9% organic [4][5] - Adjusted diluted EPS for Q4 was $3.96, with a full-year record of $14.40, reflecting a 9.6% growth, including a two-point impact from tariffs [5][17] - Adjusted gross margin for Q4 was 54.2%, and adjusted operating margin was 25.8%, with a full-year adjusted gross margin of 54.7% and operating margin of 25% [16][17] Business Line Data and Key Metrics Changes - New BD achieved strong organic growth of 4.9% in Q4, with significant contributions from various segments [4] - BD Interventional experienced high single-digit growth, driven by double-digit growth in PureWick and advanced tissue regeneration [7][14] - Pharma systems saw high single-digit growth in biologics, offset by lower vaccine demand, which constitutes about 20% of pharma systems revenue [15][23] Market Data and Key Metrics Changes - The biosciences business showed sequential improvement in sales in the U.S. and EMEA, led by demand for the new FACSDiscover platform [7][15] - Research funding in biosciences remained subdued, impacting growth, while diagnostic solutions returned to positive growth due to recovering BD BACTEC utilization [7][15] - China is expected to decline in the mid-teens due to government policies, impacting growth by about 100 basis points [23][51] Company Strategy and Development Direction - The company is focused on accelerating its strategy as it transitions into new BD, emphasizing commercial excellence and innovation [10][20] - A two-year $200 million cost-out program has been initiated to address stranded corporate costs, with approximately half expected this year [12] - The company plans to enhance its capital allocation strategy, prioritizing internal investment, share repurchases, and a reliable dividend [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term mid-single digit growth despite transitory market dynamics expected to continue into fiscal 2026 [9][24] - The company is taking a prudent approach to guidance, incorporating updated views on the operating environment, particularly regarding vaccines and China [31][32] - Management highlighted the importance of BD Excellence in driving margin expansion and cash generation, with expectations for continued strong performance [20][56] Other Important Information - The company announced its 54th consecutive year of dividend increases and returned $2.2 billion to shareholders, including a $1 billion share buyback [5][17] - The Waters transaction is seen as a significant strategic opportunity to unlock value for investors, with expected closure around the end of Q1 2026 [18][27] Q&A Session All Questions and Answers Question: How does the guidance for new BD reflect conservatism? - Management emphasized a prudent approach to guidance, incorporating macro dynamics and not assuming improvements in the operating environment [31][32] Question: What are the expectations for Q1 compared to the full year? - Q1 guidance reflects full-year headwinds, with expectations for growth to step up in Q2 and Q3, which are anticipated to be the strongest quarters [36][37] Question: Why not be more aggressive in returning capital to shareholders? - Management stated the focus remains on cash generation and disciplined capital allocation, with plans for significant share buybacks post-Waters transaction [41][42] Question: What was the organic growth in China for Q4? - China experienced high single-digit organic growth in Q4, with a cautious outlook due to volume-based procurement policies [51] Question: Can new BD grow EPS double digits? - Management expressed confidence in the new BD's ability to achieve high single-digit EPS growth, supported by strong cash generation and margin expansion [55][56]

Financial Data and Key Metrics Changes - Q4 revenue reached $5.9 billion, an increase of 7% and 3.9% organic growth, while full-year revenue was a record $21.8 billion, up 7.7% and 2.9% organic [4][5] - Adjusted diluted EPS for Q4 was $3.96, with a full-year record of $14.40, representing a 9.6% growth, including a two-point impact from tariffs [5][18] - Adjusted gross margin for Q4 was 54.2%, and adjusted operating margin was 25.8%, with a year-over-year increase of 140 and 80 basis points respectively [17][18] Business Line Data and Key Metrics Changes - BD Interventional experienced high single-digit growth, driven by double-digit growth in PureWick and advanced tissue regeneration [7][15] - Pharma systems saw high single-digit growth in biologics, but lower demand for vaccine products impacted overall performance [16] - The biosciences and diagnostic solutions segments returned to positive growth, with a significant improvement in BD BACTEC utilization [16][17] Market Data and Key Metrics Changes - Research funding in the biosciences business remained subdued, but sales in the U.S. and EMEA improved sequentially [7][16] - The China market is expected to decline in the mid-teens due to government policies, impacting growth by about 100 basis points [23][50] - Vaccines, which account for approximately 20% of pharma systems revenue, are projected to decline by about 25%, impacting growth by approximately 50 basis points [23] Company Strategy and Development Direction - The company is focused on creating a more agile, vertical organization to enhance commercial excellence and drive growth [10][76] - A two-year $200 million cost-out program has been initiated to address stranded corporate costs, with approximately half expected this year [12] - The company aims to deliver consistent mid-single digit revenue growth over the long term, supported by a strong innovation pipeline and BD Excellence initiatives [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term mid-single digit growth profile despite transitory market dynamics [9][24] - The company is taking a prudent approach to guidance, incorporating updated views on the operating environment and specific portfolio areas [30][31] - The upcoming combination with Waters is seen as a significant strategic opportunity to unlock value for investors [19][28] Other Important Information - The company returned $2.2 billion to shareholders, including a $1 billion share buyback, and announced its 54th consecutive year of dividend increases [5][18] - The adjusted effective tax rate is expected to be between 14% and 15% [25] Q&A Session Summary Question: How does the guidance for new BD reflect conservatism? - Management emphasized a prudent approach to guidance, incorporating macro dynamics and specific portfolio areas, while maintaining confidence in growth [30][31] Question: What are the implications of the Q1 guide versus the full year? - The Q1 guide reflects full-year headwinds, with expectations for growth to step up in Q2 and Q3 [34][35] Question: Why not be more aggressive in returning capital to shareholders? - The focus remains on cash generation and disciplined capital allocation, with plans for significant share buybacks post-Waters transaction [39][40] Question: What is the expectation for China market performance? - The company anticipates a mid-teens decline in China, with a prudent approach to future guidance [50] Question: Can new BD grow EPS double digits? - Management is confident in the potential for double-digit EPS growth driven by strong cash generation and margin expansion [52][56]

Financial Data and Key Metrics Changes - Q4 revenue reached $5.9 billion, an increase of 7% and 3.9% organic growth, while full-year revenue was a record $21.8 billion, up 7.7% and 2.9% organic [4][5] - Adjusted diluted EPS for Q4 was $3.96, and for the full year, it was $14.40, representing a 9.6% growth, including a two-point impact from tariffs [5][18] - Adjusted gross margin for Q4 was 54.2%, and adjusted operating margin was 25.8%, with a 140 basis point impact from tariffs [17][18] Business Line Data and Key Metrics Changes - New BD segment showed strong organic growth of 4.9%, with double-digit growth in advanced patient monitoring and high single-digit growth in BD Interventional [4][6][7] - In pharma systems, biologics grew high single digits, driven by GLP-1s, while vaccine demand saw a decline [8][15] - Biosciences and diagnostic solutions returned to positive growth, with a significant recovery in BD BACTEC utilization [16][17] Market Data and Key Metrics Changes - Research funding in the biosciences business remained subdued, but sales in the U.S. and EMEA improved sequentially [6][16] - The China market is expected to decline in the mid-teens due to government policies, impacting growth by about 100 basis points [24][49] - Vaccines, which account for approximately 20% of pharma systems revenue, are expected to decline by about 25%, impacting growth by about 50 basis points [24] Company Strategy and Development Direction - The company is focused on accelerating its strategy as it transitions into new BD, emphasizing commercial excellence and innovation [9][10] - A two-year $200 million cost-out program has been initiated to address stranded corporate costs [12] - The company plans to enhance its capital allocation strategy, prioritizing internal investment, share repurchases, and a reliable dividend [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering mid-single digit revenue growth over the long term, despite transitory market dynamics [9][29] - The company is taking a prudent approach to guidance, incorporating updated views on the operating environment, particularly regarding vaccines and China [33][34] - Management highlighted the importance of BD Excellence in driving margin expansion and cash generation [20][63] Other Important Information - The company announced its 54th consecutive year of dividend increases and returned $2.2 billion to shareholders, including a $1 billion share buyback [5] - The Waters transaction is expected to unlock significant strategic and financial opportunities, with a projected close around the end of Q1 2026 [19][28] Q&A Session Summary Question: How does the guidance for new BD reflect conservatism? - Management emphasized a prudent approach to guidance, incorporating macro dynamics and not assuming improvements in the operating environment [32][33] Question: What are the expectations for Q1 compared to the full year? - Q1 guidance reflects full-year headwinds, with expectations for growth to step up in Q2 and Q3 [36][37] Question: Why not be more aggressive in returning capital to shareholders? - Management stated a focus on cash generation and disciplined capital allocation, with plans for significant share buybacks post-Waters transaction [40][41] Question: What is the expected impact of Alaris on fiscal 2026? - Alaris is expected to be a headwind of over 100 basis points in fiscal 2026, with a strong contribution in fiscal 2025 [56][58] Question: How will the company drive operating margin expansion? - Management highlighted the role of BD Excellence in driving gross margin improvement and operational efficiency [63][65]

Core Viewpoint - Medical device maker Becton Dickinson exceeded Wall Street estimates for fourth-quarter adjusted profit and provided a forecast for 2026 earnings that is slightly above expectations, driven by steady demand for its products [1] Financial Performance - Becton Dickinson reported fourth-quarter adjusted profit that surpassed Wall Street estimates, indicating strong financial performance [1] - The company’s earnings forecast for 2026 is slightly above expectations, suggesting confidence in future growth [1] Market Demand - Steady demand for Becton Dickinson's products has been a key factor supporting its financial results and outlook [1]

Core Insights - Becton Dickinson (BDX) reported quarterly earnings of $3.96 per share, exceeding the Zacks Consensus Estimate of $3.92 per share, and showing an increase from $3.81 per share a year ago, representing an earnings surprise of +1.02% [1] - The company achieved revenues of $5.89 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.04% and up from $5.44 billion year-over-year [2] - Becton Dickinson has outperformed consensus EPS estimates in all four quarters over the past year, while it has topped revenue estimates three times in the same period [2] Earnings Outlook - The future performance of Becton Dickinson's stock will largely depend on management's commentary during the earnings call and the sustainability of its immediate price movement based on the latest earnings numbers and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.25 on revenues of $5.39 billion, and for the current fiscal year, it is $14.79 on revenues of $22.77 billion [7] Industry Context - The Medical - Dental Supplies industry, to which Becton Dickinson belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into potential stock performance [5]