Becton Dickinson shares fall as Q2 revenue misses estimates

Published 01/05/2025, 11:56
Becton Dickinson shares fall as Q2 revenue misses estimates

Investing.com -- Becton Dickinson (NYSE:BDX) reported second-quarter earnings that beat analyst expectations, but revenue fell short of estimates, sending shares down 5% in early trading on Wednesday.

The medical technology company posted adjusted earnings per share of $3.35 for the quarter ended March 31, 2025, surpassing the analyst consensus of $3.28. However, revenue came in at $5.27 billion, missing the $5.35 billion estimate and representing a 4.5% YoY increase.

Organic revenue growth was just 0.9% in the quarter, reflecting a challenging operating environment. Despite the soft top-line results, BD’s CEO Tom Polen highlighted the company’s ability to exceed earnings expectations through "quality gross margin improvement."

"Our BD Excellence operating system is driving continued margin expansion and increasing investment in our commercial organization and innovation," Polen said in a statement.

For the third quarter of fiscal 2025, BD forecasts earnings per share between $14.06 and $14.34, with the midpoint falling below the $14.37 analyst consensus. The company expects Q3 revenue in the range of $21.8 billion to $21.9 billion, roughly in line with estimates.

BD also announced plans to invest $2.5 billion in U.S. manufacturing capacity over the next five years, aiming to strengthen its position as the largest U.S. manufacturer of medical devices.

The company’s Medical (TASE:BLWV) segment saw notable achievements, including awards for its medication management solutions. Meanwhile, the Interventional unit received FDA clearance for a new hernia repair product, and the Life Sciences division gained approval for an advanced microbiology solution.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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