Becton Dickinson and Company Earnings: Higher Expenses Shrinks Margins, Profit Declines

S&P 500 (NYSE:SPY) component Becton Dickinson and Company (NYSE:BDX) reported its results for the second quarter. Becton, Dickinson & Company provides healthcare institutions, life science researchers, clinical laboratories, and individual consumers with laboratory equipment, medical supplies, devices, and diagnostic products.

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Becton Dickinson and Company Earnings Cheat Sheet for the Second Quarter

Results: Net income for Becton Dickinson and Company fell to $291 million ($1.38 per share) vs. $312 million ($1.38 per share) a year earlier. This is a decline of 6.7% from the year-earlier quarter.

Revenue: Rose 3.6% to $1.99 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Becton Dickinson and Company fell in line with the mean analyst estimate of $1.38 per share. It beat the average revenue estimate of $1.94 billion.

Quoting Management: “We are very pleased with our second quarter results. We posted solid revenue growth led by our BD Medical and BD Diagnostics segments, despite continuing challenges in the U.S. in our BD Biosciences segment,” said Vincent A. Forlenza, Chief Executive Officer and President. “We remain committed to our strategy of investing and innovating for growth, both organically and through acquisitions such as KIESTRA Lab Automation.”

Key Stats:

Gross margin shrank 0.9 percentage point to 51.2%. The contraction appeared to be driven by increased costs, which rose 5.5% from the year earlier quarter while revenue rose 3.6%.

Revenue has risen for the last four quarters. Revenue increased 2.5% to $1.89 billion in the first quarter. The figure rose 18.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 7.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company’s net income has fallen for the last three quarters. In the first quarter, net income fell 16.8% from the year earlier, while the figure fell 24.4% in the fourth quarter of the last fiscal year.

For the last two quarters, the company has met analyst estimates. It reported net income of $1.17 in the first quarter and net income of $1.39 in the fourth quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is $1.52 per share, down from $1.56 ninety days ago. For the fiscal year, the average estimate has moved down from $5.79 a share to $5.67 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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