Becton, Dickinson Hits Estimates, but GAAP Results Lag Last Year's

Seth Jayson, The Motley Fool
Updated

Becton, Dickinson (NYS: BDX) reported earnings today. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Becton, Dickinson met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
Becton, Dickinson and chalked up revenue of $1.89 billion. The 14 analysts polled by S&P Capital IQ anticipated a top line of $1.88 billion. Sales were 2.5% higher than the prior-year quarter's $1.84 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.17. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.17 per share on the same basis. GAAP EPS of $1.21 for Q1 were 11% lower than the prior-year quarter's $1.36 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.9%, 210 basis points worse than the prior-year quarter. Operating margin was 19.0%, 340 basis points worse than the prior-year quarter. Net margin was 13.9%, 330 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $1.42.

Next year's average estimate for revenue is $7.98 billion. The average EPS estimate is $5.82.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,114 members out of 1,133 rating the stock outperform, and 19 members rating it underperform. Among 390 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 386 give Becton, Dickinson a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Becton, Dickinson is outperform, with an average price target of $80.73.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Becton. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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