NEW YORK – Becton Dickinson reported on Thursday morning that its fiscal second quarter revenues increased approximately 2 percent year over year.
For the three months ended March 31, BD posted revenues of $4.82 billion compared to $4.75 billion in the year-ago quarter and ahead of analysts' average estimate of $4.68 billion. On a currency-neutral basis, fiscal Q2 revenues increased 4 percent, BD said.
"Our innovation pipeline and the impact of our M&A strategy played a key role in our results, and we remain well positioned to continue driving strong growth and performance in the future," CEO Tom Polen said in a statement.
BD saw sales related to COVID-19 diagnostic testing of $48 million, down from $399 million in the year-ago period. Excluding COVID-19 diagnostic testing, base revenues increased 6 percent to $4.81 billion from $4.54 billion, or 9 percent on a currency-neutral basis.
In Q2, BD's medical segment revenues were up around 10 percent to $2.36 billion from $2.15 billion a year ago.
BD life sciences revenues declined approximately 14 percent to $1.28 billion from $1.49 billion in the prior-year quarter. Within the segment, integrated diagnostic solutions revenues fell 23 percent to $888 million from $1.15 billion, while biosciences revenues increased 15 percent to $386 million from $335 million.
Performance within integrated diagnostic solutions reflected the decline in COVID-only diagnostic testing revenues as well as the impact in the base business from the comparison to higher prior-year combination flu/COVID respiratory testing revenues combined with a softer respiratory illness season in the current quarter. The decline was partially offset by growth in microbiology, aided by adoption of the BD Kiestra IdentifA and Total Modular Track solutions, Specimen Management, and continued double-digit growth from Molecular IVD assays leveraging the incremental BD Max installed base.
Within biosciences, BD said continued double-digit growth in reagents was enabled by the BD Horizon dyes, while strong performance of its instruments was driven by continued demand for the recently launched BD FACSymphony A1/A5 SE research analyzers as well as improved BD FACSLyric product availability for clinical customers.
BD interventional segment revenues grew 7 percent to $1.19 billion from $1.11 billion, driven by strong performance across the segment, BD said.
Geographically, revenues from the company's US business were up approximately 2 percent to $2.73 billion from $2.67 billion a year ago, while revenues from international markets increased a fraction of a percent to $2.09 billion from $2.08 billion in Q2 2022.
In the quarter, the firm completed the first early-access shipments to customers of the BD FACSDiscover S8 Cell Sorter, introduced a new high-throughput single-cell multiomics platform called the BD Rhapsody HT Xpress System, received FDA approval for the BD Onclarity HPV molecular diagnostics assay for use with both BD SurePath liquid-based pap test and Hologic ThinPrep pap test, and received FDA 510(k) clearance for the BD Vaginal Panel for use on the BD COR System.
BD's net income applicable to common shareholders for the quarter was $438 million, or $1.53 per share, compared to net income of $431 million, or $1.50 per share, a year ago. Adjusted EPS for the recently completed quarter was $2.86, above the consensus Wall Street estimate of $2.74.
BD's R&D expenses increased 3 percent to $337 million from $327 million in Q2 2022, and its selling and administrative costs increased 1 percent to $1.21 billion from $1.19 billion a year ago. The firm also reported $62 million in expenses related to acquisition integration and restructuring during the quarter versus $28 million for such expenses in Q2 last year.
BD finished the quarter with $1.98 billion in cash and cash equivalents, $87 million in restricted cash, and $6 million in short-term investments.
The company raised the lower end and midpoint of its full-year base revenue guidance to revenues of $19.2 billion to $19.3 billion from a previously announced range of $19.1 billion to $19.3 billion. Revenue guidance assumes $50 million in COVID-19-only diagnostic testing revenues. The company now expects adjusted diluted EPS of between $12.10 and $12.32 compared to $12.07 to $12.32 previously.
Shares of BD were down approximately 3 percent in Thursday morning trading on the New York Stock Exchange to $255.18.