Becton Dickinson & Co (BDX) Reports Q1 Fiscal 2024 Results: Margin Execution Leads to ...
Revenue: Q1 revenue of $4.7 billion, a 2.6% increase year-over-year.
GAAP and Adjusted EPS: Q1 GAAP diluted EPS from continuing operations at $0.96; adjusted diluted EPS at $2.68.
Guidance: Full-year adjusted EPS guidance raised to $12.82 to $13.06.
Organic Revenue Growth: Organic revenue growth of 2.4%.
Segment Performance: BD Medical and BD Interventional segments show revenue growth, while BD Life Sciences revenue declines slightly.
Becton Dickinson & Co (NYSE:BDX), a global leader in medical technology, released its 8-K filing on February 1, 2024, detailing financial results for the first quarter of fiscal year 2024. The company, which is the world's largest manufacturer and distributor of medical surgical products, including needles, syringes, and diagnostic instruments, reported a revenue increase and raised its full-year adjusted earnings per share (EPS) guidance.
Financial Performance Overview
BDX's revenue for the quarter was $4.7 billion, marking a 2.6% increase as reported over the same period last year. This growth is attributed to a 1.6% currency-neutral increase and a 2.4% organic increase. Despite a reported diluted earnings per share (EPS) decrease from $1.70 to $0.96, the adjusted diluted EPS was $2.68, reflecting strong margin performance and cash flow that exceeded the company's expectations.
Tom Polen, chairman, CEO, and president of BDX, commented on the results, stating,
Our Q1 results reflect our teams strong execution of our BD 2025 strategy, in particular leveraging our broad portfolio of simplification programs to deliver both margin performance and cash flow ahead of our expectations."
He also emphasized the company's position to achieve increased fiscal 2024 guidance and create sustained value for all stakeholders.
Segment and Geographic Performance
The BD Medical segment reported a 3.5% revenue increase, driven by Medication Management Solutions (MMS) and Pharmaceutical Systems (PS). The BD Interventional segment saw a 5.2% increase, primarily due to Surgery and Urology & Critical Care (UCC) business units. However, the BD Life Sciences segment experienced a slight decline of 1.0%, attributed to a decrease in Integrated Diagnostic Solutions (IDS), partially offset by growth in Biosciences (BDB).
Geographically, BDX's U.S. revenue grew by 0.7%, while international revenue saw a more substantial increase of 5.5%, with a 2.9% currency-neutral change.
Outlook for Fiscal 2024
BDX has raised the lower end and midpoint of its fiscal 2024 organic revenue growth guidance range and increased its adjusted diluted EPS guidance range. The company now expects fiscal year 2024 revenues to be between approximately $20.2 billion and $20.4 billion, with organic revenue growth anticipated to be between 5.5% and 6.25%. Adjusted diluted EPS is projected to be $12.82 to $13.06, reflecting an increase at the midpoint, including an operational increase and an improvement related to foreign currency translation.
The company's outlook for fiscal 2024 includes several assumptions about factors that could affect its business, such as macroeconomic conditions, competitive factors, and foreign currency exchange rates.
Investor and Analyst Information
BDX hosted an audio webcast for the public, investors, analysts, and news media to discuss its first-quarter results. The webcast, along with accompanying slides, is available on BDX's website, and a replay will be accessible through February 8, 2024.
For detailed financial tables and a reconciliation of non-GAAP financial measures to the most comparable GAAP measures, please refer to the attached financial tables in the 8-K filing.
Conclusion
BDX's first-quarter fiscal 2024 results demonstrate the company's ability to execute its strategic initiatives effectively, leading to improved margin performance and a positive outlook for the year. The raised guidance reflects confidence in the company's continued growth and operational excellence.
Explore the complete 8-K earnings release (here) from Becton Dickinson & Co for further details.
This article first appeared on GuruFocus.
