Medical technology major
Becton, Dickinson and Company
) posted adjusted earnings per share to $1.58 for the fourth
quarter of fiscal 2013, topping the Zacks Consensus Estimate of
$1.47 as well as the year-ago earnings of $1.42 by 11.3%.
Adjusted earnings exclude one-time items as well as the medical
device excise tax that came into effect in January 2013. However,
reported earnings fell drastically by 66.0% to 46 cents per share
from $1.35 per share in the fiscal 2012-quarter.
Revenues in the quarter went up 6.8% to $2,101 million, also
exceeding the Zacks Consensus Estimate of $2,045 million. In
constant currency, revenues grew 7.2% in the quarter.
For fiscal 2013, adjusted earnings rose 10.8% to $5.95 per share
from $5.37 per share in the prior fiscal year. Yearly earnings
surpassed the Zacks Consensus Estimate of $5.75. Revenues in the
year rose 4.5% to $8,054 million.
Revenues by Geography
Revenues in the U.S. went up 3.4% to $851 million. The increase
was attributable to the Pharmaceutical Systems unit that
benefitted from the acquisition of Safety Syringes and strong
orders, partially offset by softness in Women's Health and
Revenues outside the U.S. rose 9.3% (or 10.1% in constant
currency) to $1.2 billion. The increase was driven by continued
strength in emerging markets and strong sales of
For the fiscal year ended Sep 30, 2013, revenues in the U.S.
edged up 2.0% to $3.4 billion, while international revenues rose
6.3% (8.0% in constant currency) to $4.7 billion.
Segments in Detail
Revenues in the
segment rose 6.8% (6.7% on a constant currency basis) globally to
$1.1 billion, reflecting strong Medical Surgical Systems and
Pharmaceutical Systems sales. For the fiscal year ended Sep 30,
2013, revenues in the segment went up 5.3% or 6.0% on a constant
Global revenues in the
segment scaled up 5.4% (6.3% in constant currency) to $680
million, due to impressive sales of Preanalytical Systems'
safety-engineered products, and solid sales within the Diagnostic
Systems unit driven by Kiestra Lab Automation installations to
some extent. For the fiscal year, segment revenues inched up
4.3%, or 5.2%, in constant currency.
Revenues in the
swelled 10.0% (11.6% in constant currency) to $300 million
globally, on the back of solid instrument placements in Cell
Analysis, the reversal of an unfavorable timing of orders in
Advanced Bioprocessing, and government funding in Japan. For
fiscal 2013, revenues edged up 2.0%, or 3.6% on a constant
Fiscal 2014 Guidance
For fiscal 2014, Becton Dickinson expects both reported and
constant currency revenue growth in the range of 4.0 to 5.0%. BDX
also anticipates adjusted earnings per share of $5.81 for the
year, which is below the Zacks Consensus Estimate of $6.21 as
well as the fiscal 2013 earnings by 2.4%.
In constant currency, adjusted earnings per share are anticipated
to grow between 8.5 and 9.5%, or between 9.0 and 10.0% excluding
the incremental impact of the medical device tax. Becton
Dickinson plans to repurchase about $450 million of its common
stock in 2014.
BDX continues on a positive note with its fourth quarter and
fiscal 2013 results exceeding expectations on both fronts.
Following the earnings announcement, shares rose 0.5% yesterday.
While the domestic market is largely penetrated, the company's
robust growth in the international markets is a material upside.
Further, penetration in emerging markets should bolster the top
line for Becton Dickinson.
However, we are disappointed about its lower earnings guidance
for fiscal 2014, which is below the analyst consensus as well. As
a result, we remain concerned about the future stock price
movement of the company.
BDX currently carries a Zacks Rank #3 (Hold). While we remain
on the sidelines about the company, medical/dental supplies
stocks that are worth considering include
Merit Medical Systems, Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).
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