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Becton, Dickinson (BDX) Beats Q2 Earnings on Solid Sales

Becton, Dickinson and Company BDX , popularly known as BD, reported second-quarter fiscal 2016 earnings of $2.18 per share, which beat the Zacks Consensus Estimate by 17 cents. Earnings surged 44.7% from the year-ago quarter on a currency-neutral basis. Including foreign currency effect, earnings increased 35.4% in the reported quarter.

Becton, Dickinson and Company - Earnings Surprise | FindTheBest

Quarter Details

At currency-neutral basis, revenues surged 55.2% to $3.07 billion, which was slightly better than the Zacks Consensus Estimate of $3.06 billion. On a comparable (including Carefusion figures) and currency-neutral basis, revenues increased 1.8% from the year-ago quarter.

BD medical revenues grew 99.5% year over year on a currency-neutral basis to $2.14 billion. Medication and Procedural solution sales soared 53.2%, while Diabetes cure and Pharmaceutical revenues increased 3.6% and 11%, respectively. Medication management solutions and Respiratory solution (Carefusion's division) revenues totaled $536 million and $213 million, respectively, in the reported quarter.

On a comparable and currency-neutral, BD medical revenues increased 6.1%, primarily driven by robust sales across most of the segments.

BD Lifesciences revenues increased 3.4% from the year-ago quarter to $936 million on a currency-neutral basis. Preanalytical Systems and Diagnostics Systems revenues advanced 5.7% and 4.6% on a year-over-year basis, respectively. BD Biosciences revenues declined 0.5% from the year-ago quarter.

Total safety revenues improved 38.8% year over year to $733 million. U.S. revenues increased 50.7%, while international revenues were up 25.1% from the year-ago quarter.

Geographically, U.S. revenues increased a strong 99.6% to roughly $1.72 billion, while International revenues were up 23% on a currency-neutral basis to $1.35 billion.

Guidance

For fiscal 2016, on a comparable and currency-neutral basis, revenues are expected to increase approximately 24.5% to 25%. BD continues to estimate organic revenue growth of approximately 4.5% to 5%.

Meanwhile, adjusted earnings (on a currency-neutral basis) are expected in the range of $9.01 to $9.08, reflecting year-over-year growth of 26% to 27%.

Zacks Rank & Key Picks

Currently, Becton, Dickinson carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the same space include C.R. Bard BCR , CONMED Corp CNMD and Align Technology ALGN . All the three stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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