Why Is Becton Dickinson (BDX) Down 4.5% Since Last Earnings Report?

Core Viewpoint - Becton Dickinson (BDX) has experienced a decline in share price of approximately 4.5% since its last earnings report, underperforming the S&P 500, raising questions about future performance leading up to the next earnings release [1] Financial Performance - BDX reported adjusted earnings per share of $2.91 for Q1 fiscal 2026, a decrease of 15.2% year over year, but exceeding the Zacks Consensus Estimate by 3.4% [2] - GAAP earnings per share for the quarter was $1.34, reflecting an increase of 28.8% from the previous year [2] - Revenues for the first quarter were $5.25 billion, up 1.6% year over year, surpassing the Zacks Consensus Estimate by 2% [3] - New BD revenues, reflecting the separation of its Biosciences and Diagnostic Solutions business, were $4.49 billion, an increase of 3.5% on a reported basis [4] Segment Performance - The Medical Essentials segment reported revenues of $1.59 billion, up 0.6% year over year, while the Connected Care segment generated $1.13 billion, up 5.5% [5] - BioPharma Systems segment revenues were $429 million, up 2.7%, and the BD Interventional segment generated $1.33 billion, up 5.8% [6] - The BD Life Sciences segment saw revenues decline to $766 million, down 8.3% year over year [6] Geographic Performance - U.S. revenues improved by 2.6% year over year to $3.16 billion, while international revenues were $2.09 billion, up 0.2% on a reported basis but down 2.8% at constant exchange rates [7] Margin Analysis - Gross profit increased by 7.9% year over year to $2.41 billion, with gross margin expanding by 266 basis points to 45.9% [8] - Adjusted operating profit totaled $712 million, reflecting a 24% increase from the previous year, with an adjusted operating margin of 13.6% [9] Financial Position - At the end of Q1 fiscal 2026, BDX had cash and cash equivalents of $751 million, up from $649 million at the end of fiscal 2025, while total debt increased to $19.54 billion [10] - Net cash provided by continuing operating activities was $657 million, compared to $693 million a year ago [10] Dividend History - BDX has a consistent dividend-paying history, with a five-year annualized dividend growth rate of 5.47% [11] Fiscal Guidance - For fiscal 2026, BDX projects revenue growth above low single digits on a reported basis and anticipates adjusted earnings per share in the range of $12.35-$12.65, with the Zacks Consensus Estimate at $14.84 [12] Estimate Revisions - There has been a downward trend in estimates, with the consensus estimate shifting down by 16.86% [13] VGM Scores - BDX has an average Growth Score of C and a similar score for momentum, with a grade of B for value, placing it in the top 40% for value investors [14] Outlook - Estimates for BDX have been trending downward, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [15]