BD Q1 Results Top View, Lifts Full Year Forecast - Update

(RTTNews) - Medical technology firm Becton, Dickinson and Co. (BDX) Tuesday reported first-quarter results that topped Wall Street estimates. Further, the company raised the lower end of its full year forecast.

Net income declined to $271 million or $1.37 per share from last year's $625 million or $3.13 per share. The prior-year results included income from discontinued operations of $355 million. Income from continuing operations rose to $1.37 from $1.35.

Excluding a medical device excise tax that went into effect in January 2013 under the U.S. healthcare reform law, adjusted earnings per share from continuing operations were $1.42.

On average, 20 analysts polled by Thomson Reuters expected earnings of $1.30 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues grew 6 percent to $2.015 billion from $1.900 billion in the prior year. Wall Street expected revenues of $1.98 billion. The revenue growth was 6.7 percent on a currency-neutral basis.

In the BD Medical segment, worldwide revenues advanced 8.2 percent to $1.06 billion, reflecting strong sales in the Medical Surgical Systems and Diabetes Care units and solid sales in the Pharmaceutical Systems unit. Both the Medical Surgical and Pharmaceutical Systems units also benefited from favorable timing of orders.

Revenue grew 3.1 percent in the BD Diagnostics segment to $672 million, driven by international expansion in the Preanalytical Systems and Diagnostic Systems business units. Diagnostic systems growth was also helped, in part, from a timing of flu orders.

Geographically, revenues in the U.S. rose 2.3 percent, while it climbed 8.9 percent internationally, reflecting strength in emerging markets and sales of safety-engineered products apart from solid growth in Western Europe.

Total operating costs and expenses rose 8.5 percent to $1.637 billion.

The company expects reported earnings per share from continuing operations for 2014 to be between $6.19 and $6.22, compared to $5.81 in the prior year. The previous projection was for earnings per share from continuing operations to be in the range of $6.16 to $6.22. Analysts look for earnings of $6.23 per share.

BD estimates that reported and currency-neutral revenues for 2014 will increase 4.5 to 5.0 percent, compared to the prior forecast of 4 to 5 percent growth.

The company plans to repurchase, subject to market conditions, about $450 million of its common stock in fiscal year 2014.

Vincent Forlenza, CEO, said, ''Fiscal year 2014 is off to a strong start. Our revenue and earnings growth exceeded our expectations and we have continuing confidence that we have built a solid foundation for future growth. Accordingly, we are raising the bottom end of our previous revenue and earnings ranges for our full fiscal year guidance." BDX closed down 2.5 percent at $105.40 on Monday and is moderately higher in pre-market activity.