Medical technology major
, Becton, Dickinson and Company
) reported second-quarter fiscal 2013 adjusted earnings per share
from continuing operations of $1.44, beating the Zacks Consensus
Estimate of $1.35 per share.
The company reported net income from continuing operations of
$276.1 million (or $1.39 per share). Total net income was $275.6
million (or $1.39 per share).
Quarter in Detail
Becton Dickinson recorded second-quarter revenues of $2,000.4
million, up 3.7% (up 4.1% in constant currency) year over year,
sailing past the Zacks Consensus Estimate of $1,986 million.
On a geographic basis, domestic revenues (contributing 41.2%
in the second quarter) inched up 0.3% year over year to $823.6
million while overseas revenues increased 6.2% (up 6.9% in
constant currency) to $1,176.8 million. Domestic revenues were
negatively affected by the timing of orders while international
revenues were boosted by growth in the emerging nations and
robust growth of safety engineered products.
At BD Medical, global revenues moved up 4.0% (up 4.2% in
constant currency) year over year to $1062.1 million in the
quarter, driven by healthy revenues from Diabetes Care,
Pharmaceutical Systems and higher revenues from safety-engineered
offerings in the international market.
Within BD Medical, revenues from Medical Surgical Systems were
up 3.8% (up 4.2% in constant currency) year over year to $538.6
million. Diabetes Care sales increased 5.9% (up 6.6% in constant
currency) to $232.1 million, while Pharmaceutical Systems
revenues were up 3.0% (up 2.4% in constant currency) to $291.4
At BD Diagnostics, global revenues were up 4.6% (up 4.9% in
constant currency) year over year to $658.9 million on account of
growth in expansion in overseas markets and an early, burdensome
flu season. Preanalytical Systems revenues rose 2.1% (up 2.2% in
constant currency) to $330 million while Diagnostic Systems sales
were up 7.2% (up 7.8% in constant currency) to $328.9
Global revenues from the BD Biosciences unit improved
marginally 0.6% (up 1.9% in constant currency) year over year to
$279.3 million, led by strong instrument placements in the
domestic market along with robust orders from Advanced
Bioprocessing. However, the growth was offset by austerity
measures and economic slowdown in Western Europe and Japan,
Gross margin contracted 30 basis points (bps) 50.9% in the
reported quarter. Consolidated operating costs and expenses
increased 4.8% year over year to $1,619.2 million, as Becton
Dickinson spent marginally more on both selling and
administrative expenses and on R&D. Operating margin declined
80 bps to 19.1% in the second quarter.
Based on encouraging second-quarter results, Becton Dickinson
revised its guidance for fiscal 2013. The company reiterated
reported sales growth for fiscal 2013 in the range of 3.5% to 4%.
The company forecasts constant currency revenue growth in the
range of 4.5% to 5.0% compared with 4.0% to 4.5% earlier. The
current Zacks Consensus Estimate of $7,980 million implies a
year-over-year growth of over 3%, trailing the company's
Becton Dickinson now expects reported earnings per share from
continuing operations for fiscal 2013 in a band of $5.72 and
$5.75 versus the earlier outlook of $5.69 and $5.72. The
projection implies year-over-year constant currency growth of
6.5% -7% (from previously guided 7.5% -8.0%) for fiscal 2013 or
11.0% -11.5% (from previously guided 10.5% -11.0%) after
accounting for the medical device tax implemented in January
2013. The current Zacks Consensus Estimate of $5.71 falls within
the company's guidance. Becton Dickinson plans to repurchase $500
million of its shares in fiscal 2013, subject to market
Becton Dickinson continues on a positive note with its fiscal
second-quarter results exceeding expectations. Moreover, the
upward revision in guidance for the ongoing fiscal reflects
positive driving events.
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 which serves a market that is
partly insulated from volatile macroeconomic conditions.
The stock carries a Zacks Rank #3 (Hold). Other medical stocks
The Cooper Companies Inc.
MWI Veterinary Supply, Inc.
West Pharmaceutical Services, Inc.
), carrying a Zacks Rank #2 (Buy) are expected to do well and
warrant a look.
BECTON DICKINSO (BDX): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
MWI VET SUPPLY (MWIV): Free Stock Analysis
WEST PHARM SVC (WST): Free Stock Analysis
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