NEW YORK (GenomeWeb) – Becton Dickinson reported a 41 percent year-over-year increase in its fiscal third quarter revenues today, primarily due to the acquisition of C.R. Bard.
For the three months ended June 30, the medical technology company posted $4.28 billion in revenues, up from $3.04 billion during the year-ago quarter and slightly beating average analyst estimates of $4.24 billion.
Revenues from BD's Medical segment were $2.25 billion during the quarter, up 20 percent from $1.87 billion last year, which mainly resulted from the acquisition of C.R. Bard.
BD Life Sciences revenues totaled $1.08 billion, up 8 percent from $997 million in the prior-year quarter, which was driven by the strong performance across all three business units. Specifically, preanalytical systems revenue was $404 million, up 7 percent from $376 last year, due to global strength in core products. Diagnostic systems revenue was $362 million, up 8 percent from $335 last year, which was "driven by core microbiology and continued growth in our BD Max molecular platform," according to CFO and Executive Vice President Christopher Reidy. Biosciences revenues were $314 million, up 10 percent from $286 million last year, and were "driven by performance in research reagents and advanced bioprocessing, as well as growth in new instruments, such as the FACSMelody and FACSLyric," Reidy said during the call.
BD Interventional revenues were $954 during the quarter, almost six times the revenues of the prior-year quarter, which were $167 million. Those results reflect the strong performance of the peripheral intervention and the urology and critical care units.
On a conference call to discuss the firm's Q3 results, BD chairman and CEO Vincent Forlenza said that the company's life science segment saw "continued strong performance on our BD Max platform, driven by enteric [solutions], CT/GT, as well as the recently launched Max Vaginal Panel."
"We are seeing strong customer adoption of our vaginal panel, a unique assay capable of directly detecting the three most common infections known to cause vaginitis. In addition, we will be expanding the assay menu further with the launch of the Max TB assay in the coming months," he said.
Revenues from BD's US business were $2.24 billion for the quarter, up 46 percent from $1.6 billion last year, mainly due to the C.R. Bard acquisition. Revenues from international markets totaled $1.94 billion, up 35 percent from $1.43 billion in the prior year period, again primarily driven by the Bard acquisition.
The company's net income applicable to its common shareholders for the quarter was $556 million, or $2.03 per share, up from a loss of $165 million, or $.75 per share, in the prior-year period. This is primarily due to a non-cash charge the company took a year ago related to a change in its US dispensing business model. Adjusted EPS was $2.91, up 18 percent over last year's $2.46 and beating the consensus analyst estimate of $2.86.
BD's R&D expenses for the quarter were $277 million, up 49 percent from $186 million in fiscal Q3 2017, while selling and administrative expenses totaled $1.09 billion, up 50 percent from $719 million last year.
Based on the quarter's results, the firm raised its full fiscal year 2018 revenue guidance and now expects revenues to grow more than 31.5 percent. The firm previously guided to growth of between 31 and 31.5 percent.
In addition, it narrowed its guidance for adjusted diluted earnings per share to between $10.95 and $11.05, representing growth of approximately 15.5 to 16.5 percent over fiscal year 2017. The previous range was $10.90 to $11.05 per share.
BD's shares were down 3 percent at $242.60 in mid-morning trading on the New York Stock Exchange.