The 10-second takeaway
For the quarter ended June 30 (Q3), Becton, Dickinson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew slightly. GAAP earnings per share dropped.
Margins shrank across the board.
Becton, Dickinson chalked up revenue of $2.05 billion. The 18 analysts polled by S&P Capital IQ predicted a top line of $2.05 billion on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $1.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.54. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.48 per share. Non-GAAP EPS of $1.54 for Q3 were 1.3% higher than the prior-year quarter's $1.52 per share. (The prior-year quarter included $0.07 per share in earnings from discontinued operations.) GAAP EPS of $1.52 for Q3 were 4.4% lower than the prior-year quarter's $1.59 per share. (The prior-year quarter included $0.07 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 51.6%, 60 basis points worse than the prior-year quarter. Operating margin was 19.7%, 300 basis points worse than the prior-year quarter. Net margin was 14.7%, 180 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 $1.52.
Next year's average estimate for revenue is $8.00 billion. The average EPS estimate is $5.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,119 members out of 1,142 rating the stock outperform, and 23 members rating it underperform. Among 396 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 392 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 hold, with an average price target of $98.50.
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