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Becton Dickinson Q4 Revenues Rise 7 Percent, Beat Estimates

NEW YORK – Becton Dickinson reported on Thursday that its fiscal fourth quarter revenues increased approximately 7 percent year over year driven by SARS-CoV-2 test sales.

For the three months ended Sept. 30, the Franklin Lakes, New Jersey, company posted revenues of $5.14 billion compared to $4.78 billion in the year-ago quarter, and above analysts' average estimate of $4.91 billion. On a currency-neutral basis, Q4 revenues increased about 6 percent over the prior year.

BD's medical segment brought in $2.53 billion, a 9 percent increase over $2.32 billion reported a year ago. Its life sciences segment recorded $1.53 billion in revenues, up approximately 3 percent from $1.49 billion in Q4 2020.

Within the life science segment, integrated diagnostic solutions revenues fell a fraction of a percent to $1.18 billion from $1.19 billion in the quarter, while biosciences revenues increased 16 percent to $352 million from $303 million.

The firm credited the life sciences segment growth to continued recovery in demand for specimen management products and microbiology solutions. Performance in the biosciences unit reflected demand for research solutions as lab activity continued to normalize, BD said, while COVID-19 diagnostic testing revenue within integrated diagnostic solutions declined to $316 million from $452 million in the prior year.

On a call with investors following the release of the earnings, BD's recently appointed CFO Christopher DelOrefice said that excluding COVID-19 testing, life sciences revenues grew approximately 16 percent.

In the quarter, BD also saw "strong sales" of its BD Max in vitro diagnostic assays, DelOrefice said, which were up about 20 percent year over year. In a slide presentation accompanying the call, BD specified it saw $110 million in sales for BD Max, specimen collection, and transport in the quarter, as well as $206 million in BD Veritor Plus System revenues.

BD Interventional segment revenues in the quarter rose 10 percent to $1.07 billion from $978 million a year ago.

Revenues from the company's US business was up 2 percent to $2.80 billion from $2.75 billion a year ago, while revenues from international markets were up approximately 15 percent at $2.33 billion from $2.03 billion in Q4 2020.

During the fiscal fourth quarter the company launched the BD FACSymphony A1 Cell Analyzer as well as the BD Cor system in the US. It also received Emergency Use Authorization from the US Food and Drug Administration for the BD Veritor At-Home COVID-19 Test.

Regarding the US launch of the BD Cor and Onclarity HPV Assay, BD CEO Tom Polen said on the call that the system provides customers a way to "do more testing with less available staff, while providing important new clinical insights for cervical cancer screening and management."

Polen further highlighted that the BD Veritor At-Home COVID-19 assay is the first EUA home COVID antigen test using a smartphone reader to interpret and report results.

"This platform is a great example of how we are applying digital capabilities to bring new, first-to-world innovations to market and expanding care into new settings," he said.

BD's net income for Q4 was $265 million, or $0.84 per share, compared to a net income of $128 million, or $.36 per share, a year ago.

On an adjusted basis, the company reported Q4 EPS of $2.59, above the Wall Street estimate of $2.46 per share.

BD's R&D expenses jumped 29 percent year over year to $387 million from $299 million, and its sales and administrative costs increased 11 percent to $1.33 billion from $1.20 billion.

For full-year 2021, BD reported revenues of $20.25 billion, an increase of 18 percent from $17.12 billion in 2020.

BD medical revenues in fiscal 2021 rose 9 percent year over year to $9.48 billion from $8.68 billion, while BD life sciences revenues increased 40 percent to $6.53 billion from $4.68 billion.

Within life sciences, integrated diagnostic systems was up 48 percent to $5.23 billion from $3.53 billion a year ago. Bioscience revenues increased approximately 14 percent to $1.31 billion from $1.14 billion. Within the integrated diagnostic systems business, COVID-19 diagnostic testing revenue for the full year was approximately $2 billion, Polen said on the call.

BD interventional segment revenues for the full year increased 13 percent to $4.24 billion from $3.76 billion a year ago.

On a full-year basis, revenues from the company's US business increased 13 percent to $10.97 billion from $9.72 billion, while revenues from international markets fell jumped 25 percent to $9.28 billion from $7.40 billion in Q4 2020.

For 2021, BD's net income was $2.09 billion, or $6.85 per share, compared to $874 million, or $2.71 per share, in 2020. The firm reported adjusted full-year earnings per share of $13.08. The consensus Wall Street estimate was for EPS of $12.90.

BD's R&D expenses for 2020 jumped 22 percent year over year to $1.34 billion from $1.10 billion, and its sales and administrative costs increased 13 percent to $4.87 billion from $4.33 billion.

For fiscal 2021, BD provided guidance for revenue of $19.3 billion to $19.5 billion, and adjusted diluted EPS of $12.30 to $12.50. The revenue guidance range assumes approximately $200 million in COVID-19-only diagnostic testing revenues, BD said.

In morning trading on the Nasdaq, BD's stock was down 1 percent to $245.02.