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.
Is Becton, Dickinson the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Becton, Dickinson to My Watchlist.
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. 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.