Medical Device Maker Becton Dickinson's Q1 Earnings: Here's Why This Analyst Is Bullish On Long-Term Prospects

Zinger Key Points
  • BD expects fiscal year 2024 revenues of approximately $20.2 billion-$20.4 billion.
  • William Blair maintains a positive outlook on Becton Dickinson's and cites confidence in 2025 goals.

Becton, Dickinson, and Company BDX posted first-quarter 2024 adjusted EPS of $2.68, beating the consensus of $2.40.

BD reported sales of $4.71 billion, up 2.6% Y/Y (+1.6 on constant currency), slightly below the consensus of $4.73 billion.

The company’s medical segment reported a 3.5% growth to $2.23 billion, and its interventional business grew by 5.2% to $1.19 billion. Life sciences revenue declined 1% to $1.29 billion. 

Guidance: BD expects fiscal year 2024 revenues of approximately $20.2 billion-$20.4 billion versus the consensus of $20.2 billion and prior guidance of $20.1 billion-$20.3 billion.

The guidance includes organic revenue growth of 5.5%-6.25% versus prior guidance of 5.25%-6.25%.

Total currency-neutral revenue growth is now expected to be 4.75% to 5.5% compared to 4.5% to 5.5% previously.

The company sees 2024 adjusted EPS of $12.82-$13.06 versus prior guidance of $12.70-$13.00 versus the consensus of $12.84.

William Blair maintains a positive outlook on BD’s long-term prospects, expressing confidence in its progress toward meeting its BD 2025 goals, particularly in expanding operating margins. 

The expectation is that BD should be able to drive margins higher throughout this year and exit fiscal 2024 on track to achieving said 2025 target of 25%. Despite shares trading at 19 times fiscal 2024 revenue, slightly below the three-year average of 20 times the next twelve months (NTM) earnings, William Blair rates the shares as Outperform.

Price Action: BDX shares are up 1.01% at $241.23 on the last check Thursday.

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