This article has been updated to include comments from BD's earnings call.
NEW YORK (GenomeWeb) – Becton Dickinson reported today that its fiscal second quarter revenues rose 5 percent year over year.
For the three months ended March 31, the Franklin Lakes, New Jersey-based company posted revenues of $3.07 billion compared to $2.05 billion in the year-ago quarter, in line with analysts' average estimate.
On an adjusted, currency-neutral basis Q2 revenues rose 55 percent year over year, the company said.
BD's Medical segment made up the lion's share of the quarter's revenues, bringing in $2.13 billion, a 93 percent increase over the $1.11 billion reported a year ago. BD Life Sciences recorded $936.0 million in revenues, down 1 percent from $945.0 million in Q2 2014. Within the segment, preanalytical systems revenues were fairly flat at $340.0 million, while diagnostic systems ticked up to $319.0 million from $318.0 million, and biosciences declined to $277.0 million from $289.0 million.
On a conference call following the earnings release, CFO Chris Reidy noted that the increase in revenues from the diagnostics systems business was a result of strong growth in core microbiology, including microbe identification and antibiotic susceptibility testing, or ID/AST, and BD Max assays.
"Growth was also aided in part by an increase in flu activity in the US — while the flu season is still mild in comparison to the prior year, the timing of the late flu season had a positive benefit year-over-year in the quarter," Reidy said.
The firm also noted on the call that it anticipates launching its GenCell Clic library preparation platform and FacSeq cell sorter designed specifically for genomic applications later this fiscal year.
Revenues from the company's US business rose 99 percent to $1.71 billion from $863.0 million a year ago, while revenues from international markets 14 percent to $1.35 billion from $1.19 billion in Q2 2015.
BD's net income for the quarter rose to $338.0 million, or $1.56 per share, from $216.0 million, or $1.08 per share, a year ago. On an adjusted basis, the company reported Q2 EPS of $2.18, beating the consensus Wall Street estimate of $2.02.
BD's R&D expenses rose 40 percent to $182.0 million from $129.0 million for Q2, and its SG&A costs rose 43 percent to $732.0 million from $511.0 million. The firm also recorded acquisition-related costs of $104.0 million related to the $12.2 billion buy of CareFusion in March 2015.
The firm expects 24 percent to 25 percent revenue growth on a foreign currency-neutral basis for the full fiscal year 2016, and expects revenues to grow 20 percent to 21 percent on a reported basis. The firm raised its adjusted EPS for FY 2016 to $8.50 to $8.57, up from the initial guidance of $8.37 to $8.44 announced in Q1. Analysts on average expect EPS of $8.45 for the year.