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On Thursday, Stifel analysts adjusted their outlook for Becton Dickinson (NYSE:BDX) shares, reducing the price target from $280.00 to $224.00, while still holding a Buy rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week low, with analyst targets ranging from $245 to $325, suggesting significant potential upside. The company, with a market capitalization of approximately $49 billion, remains a prominent player in the Healthcare Equipment & Supplies industry. The revision comes in light of Becton Dickinson’s second-quarter fiscal year 2025 (F2Q25) performance and the update to its full-year 2025 guidance, which did not meet expectations due to several macroeconomic challenges.
The company reported sales of $5.27 billion for the quarter, falling short of both Stifel’s and the consensus estimate of $5.35 billion. The shortfall was attributed to a weaker-than-anticipated market in China, reductions in research spending, and other factors that negatively impacted the company’s top-line results. Despite these challenges, BDX has maintained strong fundamentals, with trailing twelve-month revenue of $20.64 billion and a healthy gross profit margin of 46.27%. The Life Sciences and Interventional segments, which together account for approximately 48% of total sales, were identified as primary contributors to the lower-than-expected sales figures.
Despite the sales miss, Becton Dickinson did manage to post earnings per share (EPS) that exceeded analyst predictions. The reported EPS of $3.35 surpassed Stifel’s and the consensus estimates of $3.29 and $3.28, respectively. This beat was supported by better-than-expected margins within the company.
Looking forward to the rest of fiscal year 2025, Becton Dickinson faces ongoing macroeconomic challenges, including continued pressure in the Chinese market, further reductions in research funding, and increased tariff-related headwinds. However, InvestingPro analysis indicates the company’s strong financial position, with a "GOOD" overall health score and a track record of 54 consecutive years of dividend increases. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, available for BDX and 1,400+ other top US stocks. These factors contribute to a level of uncertainty for the remainder of the year. As a result, the company has revised its full-year organic growth guidance downward, from an initial range of 4.0%-4.5% to a new range of 3.0%-3.5%.
The updated guidance reflects both the weaker-than-expected performance in F2Q25 and heightened pressures in China, now estimated to be a 175 basis points headwind compared to the previous 125 basis points projection. Despite these challenges, Becton Dickinson anticipates new product launches and additional commercial investments in PureWick and Phasix, as well as potentially less unfavorable foreign exchange impacts, to support its performance in the second half of fiscal year 2025.
In other recent news, Becton Dickinson reported its Q2 2025 earnings with mixed results, showing an adjusted earnings per share (EPS) of $3.35, which exceeded analyst expectations of $3.28. However, the company’s revenue was $5.27 billion, falling short of the anticipated $5.35 billion. The company has also announced plans for new product launches and significant investments in U.S. manufacturing. Analysts at BofA Securities downgraded Becton Dickinson’s stock rating from Buy to Neutral, citing the company’s failure to meet its original organic growth guidance and lowering its full-year organic growth forecast. BofA noted that about 75% of the guidance reduction was attributed to the Life Sciences segment. Despite these challenges, Becton Dickinson maintains a positive outlook, projecting full-year revenue between $21.8 billion and $21.9 billion, and adjusted EPS guidance of $14.34 to $14.6. The company is also proceeding with its planned business separation, which remains on schedule. These developments reflect the ongoing challenges and strategic initiatives Becton Dickinson is undertaking to navigate the current market environment.
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