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Becton Dickinson Fiscal Q1 Revenues Grow 46 Percent But Miss Top-Line Estimate

NEW YORK (GenomeWeb) – Becton Dickinson today reported a 46 percent increase year over year in fiscal 2016 first quarter revenues, with growth in its medical segment topping 92 percent.

For the three months ended Dec. 31, BD reported revenues of $2.99 billion compared to $2.05 billion in the same quarter last year, but below analysts' consensus estimate of $3.03 billion. On a currency-neutral basis, revenues increased about 54 percent year over year, BD said.

In fiscal Q1, its Life Sciences revenues were $933 million, a 5 percent decrease over from $979 million in the year-ago period, but a 2 percent increase on an adjusted basis. Results reflected solid growth in the biosciences and preanalytical systems units, the firm said, while sales of diagnostics systems declined slightly due to a weak flu season, offsetting growth in microbiology and molecular diagnostics.

Specifically, diagnostic systems sales were $313 million, a 7 percent decrease on a reported basis compared to $338 million in the year-ago period. Biosciences revenues, meanwhile, were down 4 percent to $276 million from $288 million year over year, and preanalytical systems decreased 3 percent to $344 million from $353 million.

Revenues in the BD Medical segment, meanwhile, increased 92 percent to $2.05 billion from $1.07 billion in fiscal Q1 2015, or 101 percent on a currency-neutral basis, boosted by last year's $12.2 billion acquisition of CareFusion. In this segment, medication and procedural solutions, in particular, had a strong quarter, growing 41 percent to $848 million from $601 million.

BD reported Q1 net income of $229 million, or $1.06 per share, compared to $236 million, or $1.20 per share, in the year-ago period. On an adjusted basis, EPS was $1.96, ahead of the Wall Street estimate of $1.84.

BD's R&D costs jumped 45 percent to $187 million from $129 million in fiscal Q1 last year, while SG&A costs rose 38 percent to $748 million from $544 million. It also reported acquisition-related costs of $121 million in the first quarter of 2016 compared to $23 million in such costs for Q1 2015.

For Fiscal Year 2016 BD continues to estimate that currency-neutral adjusted revenues will increase 25 percent. Including the impact of foreign currency, the firm decreased previously issued guidance of a 23 to 24 percent increase, to an increase of 20 to 21 percent. On a currency-neutral basis, BD continues to estimate organic adjusted revenues will increase about 5 percent.

BD raised its FY 2016 guidance for EPS from continuing operations from between $8.73 and $8.80 to between $9.01 and $9.08 on a currency-neutral basis. Including the estimated unfavorable impact of foreign currency, EPS is expected to be between $8.37 and $8.44, identical to guidance the firm issued in Q4 of last year.

In Wednesday morning trade on the New York Stock Exchange, shares of BD were down around 3 percent at $140.94.