The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Becton, Dickinson beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Margins grew across the board.
Becton, Dickinson reported revenue of $1.90 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $1.86 billion on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $1.89 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 $1.35. The 21 earnings estimates compiled by S&P Capital IQ anticipated $1.24 per share. GAAP EPS of $3.13 for Q1 were 159% higher than the prior-year quarter's $1.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.9%, 200 basis points better than the prior-year quarter. Operating margin was 20.6%, 160 basis points better than the prior-year quarter. Net margin was 32.9%, 1,900 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.97 billion. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $7.94 billion. The average EPS estimate is $5.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,141 members out of 1,162 rating the stock outperform, and 21 members rating it underperform. Among 400 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 398 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 $78.72.
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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 recommends 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.