The 10-second takeaway
For the quarter ended June 30 (Q3), Becton, Dickinson missed slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share grew.
Margins shrank across the board.
Becton, Dickinson logged revenue of $1.98 billion. The 16 analysts polled by S&P Capital IQ looked for net sales of $2.02 billion on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $2.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.52. The 20 earnings estimates compiled by S&P Capital IQ averaged $1.53 per share. GAAP EPS of $1.59 for Q3 were 3.9% higher than the prior-year quarter's $1.53 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.2%, 50 basis points worse than the prior-year quarter. Operating margin was 22.7%, 70 basis points worse than the prior-year quarter. Net margin was 16.5%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.95 billion. On the bottom line, the average EPS estimate is $1.39.
Next year's average estimate for revenue is $7.77 billion. The average EPS estimate is $5.35.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,132 members out of 1,152 rating the stock outperform, and 20 members rating it underperform. Among 334 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 332 give Becton, Dickinson a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Becton, Dickinson is hold, with an average price target of $80.69.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Becton, Dickinson. 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.