The 10-second takeaway
For the quarter ended March 31 (Q2), Becton, Dickinson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share expanded.
Margins dropped across the board.
Becton, Dickinson notched revenue of $2.00 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $1.99 billion on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $1.87 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 $1.39. The 21 earnings estimates compiled by S&P Capital IQ forecast $1.35 per share. GAAP EPS of $1.39 for Q2 were 0.7% higher than the prior-year quarter's $1.38 per share. (The prior-year quarter included $0.14 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 50.9%, 20 basis points worse than the prior-year quarter. Operating margin was 19.1%, 30 basis points worse than the prior-year quarter. Net margin was 13.8%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.05 billion. On the bottom line, the average EPS estimate is $1.49.
Next year's average estimate for revenue is $7.99 billion. The average EPS estimate is $5.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,122 members out of 1,145 rating the stock outperform, and 23 members rating it underperform. Among 395 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 393 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 $88.53.
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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.