This article has been updated with comments from Becton Dickinson's earnings call.
NEW YORK – Becton Dickinson said Thursday morning that its fiscal Q3 revenues increased 2 percent year over year, or 3 percent on a currency-neutral basis.
For the three months ended June 30, the Franklin Lakes, New Jersey, company reported revenues of $4.99 billion compared to $4.88 billion a year ago, below the Wall Street consensus estimate of $5.08 billion.
Revenues in BD's life sciences business increased approximately 3 percent to $1.26 billion from $1.23 billion.
Within life science, integrated diagnostic solutions revenues increased approximately 5 percent to $896 million from $858 million. Biosciences revenues, meanwhile, declined 1 percent to $363 million from $368 million, which BD said reflected transitory market dynamics that resulted in lower market demand for instruments, partially offset by growth in clinical reagents.
BD's interventional business revenues increased 2 percent to $1.24 billion from $1.22 billion, while revenues in its medical business rose 5 percent to $2.56 billion from $2.43 billion.
During the quarter, BD announced an agreement to acquire Edwards Lifesciences' critical care product group for $4.2 billion, which the firm said will enhance its portfolio of connected care and AI-based technologies. It also announced clearance by the US Food and Drug Administration of self-collected cervical samples and the commercial launch of its Rhapsody ATAC-Seq assay for single-cell epigenomics.
On a call with investors to discuss the fiscal Q3 results, Tom Polen, chairman and CEO of BD, said that the Edwards critical care group acquisition is part of the firm's overall strategy "to use AI and digital tools to help clinicians deliver more efficient care."
Polen also noted that the newly-launched three- and four-laser configurations of its FACSDiscover S8 spectral flow cytometer enable new discoveries in a broader range of fields, as highlighted in a 50-color flow cytometry experiment. The firm expects to launch a high-throughput analyzer called the BD FACSDiscover A8 in 2025, he said.
BD reported third quarter net income attributable to common shareholders of $487 million, or $1.68 per share, compared to $392 million, or $1.36 per share, a year ago. The firm reported adjusted EPS of $3.50, besting analysts' average estimate of $3.31.
The firm finished fiscal Q3 with $4.46 billion in cash and cash equivalents, $28 million in restricted cash, and $851 million in short-term investments.
The company lowered its full-year organic revenue guidance slightly to $20.1 billion from prior guidance of $20.1 billion to $20.3 billion. It also lowered its organic revenue growth prediction to 5 percent to 5.25 percent compared to a prior range of 5.5 percent to 6.25 percent. In addition, it raised its guidance for adjusted EPS to $13.05 to $13.15 from a prior range of $12.95 to $13.15.
In morning trading on the New York Stock Exchange, BD's shares were down 6 percent at $227.66.