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Becton Dickinson Q1 Revenues Up 5 Percent

NEW YORK (GenomeWeb) – Becton Dickinson reported today that its fiscal first quarter revenues rose 5 percent year over year, largely due to a 9 percent increase in revenues from its life sciences business.

For the three months ended Dec. 31, the company posted revenues of $3.08 billion, compared to $2.92 billion in the year-ago quarter, beating Wall Street analysts' average estimate of $3.05 billion. On a currency-neutral basis, revenues grew 4 percent, the firm said.

Revenues from BD's medical segment increased 4 percent to $2.04 billion from $1.96 billion a year ago. The company's life sciences business recorded $1.05 billion in revenues, up from $958.0 million in Q1 2017.

Within the life sciences segment, pre-analytical systems revenues were up around 6 percent to $375.0 million from $355.0 million, while diagnostic systems revenues were up 14 percent to $381.0 million from $334.0 million, and biosciences revenues were up 7 percent to $289.0 million from $270.0 million. BD's life sciences segment revenue growth reflects an early flu season in comparison to last year, the firm said.  

Revenues growth in diagnostic systems "was driven by strength in core microbiology and continued strong growth in our BD Max molecular platform, as well as timing of Keystra installations in the US, [emerging markets], and Europe," BD CFO Christopher Reidy said on a conference call with analysts following the release of the earnings.

Revenues from the company's US business rose 2 percent to $1.66 billion from $1.63 billion a year ago, while revenues from international markets were up 10 percent to $1.42 billion from $1.29 billion.

BD recorded a net loss for the quarter of $174 million, or $.76 per share, compared to a net income of $562.0 million, or $2.58 per share, a year ago. On an adjusted basis, the company reported Q1 EPS of $2.48, beating the consensus Wall Street estimate of $2.41 per share.

Q1 R&D expenses increased 6 percent year over year to $192.0 million from $182.0 million. SG&A costs jumped 9 percent to $774.0 million from $709.0 million a year earlier.

For fiscal year 2018, the firm said it expects revenues to increase 30 to 31 percent on a reported basis, including the accretion from the CR Bard acquisition, and expects fiscal year diluted earnings per share of $10.85 to $11.00. Analysts are expecting earnings of $10.88 in 2018.

The firm also reported obtaining CE marking on the BD Max Checkpoints assay of carbapenemase-resistant bacteria. "We expect to continue target expansion of our BD Max menu this fiscal year with the launch of our enteric viral panel and our tuberculosis assay," BD Chairman, CEO, and President Vincent Forlenza said on the earnings call. In addition, the firm anticipates approval of its BD Onclarity HPV assay, "which will further differentiate our women's health offering," Forlenza said. 

BD shares were down about 1 percent to $222.33 in Tuesday morning trading on the New York Stock Exchange.