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Becton Dickinson Q1 Revenues Fall 6 Percent, Beat Estimates

NEW YORK – Becton Dickinson reported Thursday that its fiscal first quarter 2022 earnings declined 6 percent year over year due to a drop in COVID-19 diagnostic sales to $185 million from $866 million a year ago.

For the three months ended Dec. 31, 2021, the company posted revenues of $5.0 billion compared to $5.32 billion in the year-ago quarter. Revenues exceeded Wall Street analysts' average estimate of $4.76 billion. Excluding revenues related to COVID-19-only diagnostic testing, BD's base revenues increased about 8 percent year over year to $4.81 billion from $4.45 billion a year ago.

"We continue to advance our innovation pipeline and tuck-in M&A strategy, strengthening our leadership position in our durable core [business] and adding transformative solutions to our portfolio," said Tom Polen, BD's CEO and president, in a statement.

The company's life sciences segment recorded $1.48 billion in revenues, down 25 percent from $1.98 billion in Q1 2021. The results reflect a decline in COVID testing, partially offset by 17 percent growth in the base business of the segment.

Within life sciences, integrated diagnostic solutions revenues were down 31 percent to $1.15 billion from $1.67 billion, while biosciences revenues increased 9 percent to $338 million from $312 million.

BD medical segment revenues grew 6 percent to $2.40 billion from $2.26 billion, while BD interventional segment revenues rose 4 percent to $1.12 billion from $1.08 billion.

Revenues from the company's US business declined 9 percent to $2.85 billion from $3.13 billion a year ago. Revenues from international markets were down 2 percent to $2.14 billion from $2.19 billion.

In the quarter, BD received 510(k) clearance from the US Food and Drug Administration for the BD Kiestra IdentifA, a system which automates the preparation of microbiology bacterial identification testing using smart connected robotics. The firm also obtained the CE mark and regulatory approval in Australia for the BD Cor MX instrument and initiated new distribution and retail partners for the BD Veritor At-Home COVID-19 test. BD also completed the acquisitions of four firms in the quarter, including Scanwell Health which the firm said will expand and scale digital at-home diagnostic testing.

BD recorded a net income for the quarter of $677 million, or $2.28 per share, compared to a net income of $1.00 billion, or $3.35 per share, a year ago. On an adjusted basis, the company reported Q1 EPS of $3.64, beating the consensus Wall Street estimate of $2.85 per share.

Q1 R&D expenses rose 13 percent year over year to $329 million from $291 million, while SG&A costs were up 6 percent to $1.22 billion from $1.15 billion.

The Franklin Lakes, New Jersey-based company finished the quarter with $1.9 billion in cash and cash equivalents and $8 million in short-term investments.

The firm said it is raising its guidance for fiscal year 2022. It now expects revenues in the range of $19.55 billion to $19.75 billion, up about $250 million from prior guidance of $19.3 to $19.5 billion.

Expected adjusted EPS for the full fiscal year was also increased to a new range of $12.80 to $13.00 from prior guidance of $12.30 to $12.50. Analysts' average estimate is for $12.42 for the year.

BD shares were down approximately 2 percent to $261.69 in early Thursday morning trading on the New York Stock Exchange.