Becton, Dickinson and Company BDX, popularly known as BD, delivered adjusted earnings per share (EPS) of $3.43 in the first quarter of fiscal 2025, up 27.9% year over year. The figure topped the Zacks Consensus Estimate by 15.1%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The adjustments include expenses related to purchase accounting adjustments and integration costs, among others.

GAAP EPS for the quarter was $1.04, reflecting an improvement of 8.3% from the year-ago figure.

BDX’s Revenues in Detail

BD registered revenues of $5.17 billion in the fiscal first quarter, up 9.8% year over year. The figure surpassed the Zacks Consensus Estimate by 1.3%.

At constant exchange rate (CER), revenues climbed 9.6%, while organic revenue change was 3.9% year over year.

Robust performances by all three segments drove the top-line improvement.

Shares of this company lost nearly 3.3% in yesterday’s after-hours trading.

BD’s Segment Details

BD’s operations consist of three worldwide business segments — BD Medical, BD Life Sciences and BD Interventional.

The BD Medical segment now consists of the Medication Delivery Solutions (MDS), Medication Management Solutions (MMS), Pharmaceutical Systems (PS) and the Advanced Patient Monitoring (APM) business unit, which was formed upon the closing of the acquisition of Critical Care from Edwards Lifesciences.

In the quarter under review, BD Medical reported worldwide revenues of $2.62 billion, up 17.3% from the year-ago quarter on a reported basis, 17.1% at CER and 5% on an organic basis. Per management, the segment’s organic revenue growth was led by the MDS and MMS business units. This compares to Zacks Consensus Estimate of fiscal first-quarter segmental revenues of $2.47 billion.

Worldwide revenues in the BD Life Sciences segment totaled $1.29 billion, up 0.7% year over year on a reported basis and 0.5% both at CER and on an organic basis. The segment’s performance was driven by the Specimen Management (SM) and Diagnostic Solutions (DS) business units. This compares to Zacks Consensus Estimate of fiscal first-quarter segmental revenues of $1.35 billion.

It should be noted that the BD Life Sciences segment now consists of the SM, DS and Biosciences (BDB) business units instead of the earlier Integrated Diagnostic Solutions and BDB business units.

BD Interventional segment generated worldwide revenues of $1.26 billion, up 5.8% from the year-ago quarter on a reported basis and 5.5% both at CER and on an organic basis. The segment’s revenue growth was driven by performance across the segment. This compares to the Zacks Consensus Estimate of fiscal first-quarter segmental revenues of $1.26 billion, which is in line with the company’s reported figures.

BDX’s Geographic Results

In the first quarter of fiscal 2025, revenues in the United States improved 12% to $3.08 billion. This compares to the Zacks Consensus Estimate of revenues of $2.94 billion.

International revenues grossed $2.09 billion, up 6.7% from the year-ago quarter on a reported basis and up 6.3% at CER. This compares to the Zacks Consensus Estimate of revenues of $2.15 billion.

BD’s Margin Analysis

In the quarter under review, BD’s gross profit increased 10.3% year over year to $2.24 billion. The gross margin expanded 17 basis points (bps) to 43.2%. We had projected 46.9% of gross margin in the first quarter of fiscal 2025.

Selling and administrative expenses increased 8.7% year over year to $1.32 billion. Research and development expenses increased 18.3% year over year to $343 million. Adjusted operating expenses of $1.66 billion rose 10.5% year over year.

Adjusted operating profit totaled $574 million, reflecting a 9.5% uptick from the year-ago quarter. The adjusted operating margin in the fiscal first quarter contracted 3 bps to 11.1%.

BDX’s Financial Position

BD exited first-quarter fiscal 2025 with cash and cash equivalents and short-term investments of $728 million compared with $2.16 billion at fiscal 2024-end. Total debt (including current debt obligations) at the end of the fiscal first quarter was $18.76 billion compared with $20.11 billion at fiscal 2024-end.

Net cash provided by continuing operating activities at the end of first-quarter fiscal 2025 was $693 million compared with $855 million a year ago.

Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 4.99%.

BD’s Fiscal 2025 Guidance

BD has revised its financial outlook for fiscal 2025.

BD now projects its full fiscal year revenues between $21.7 billion and $21.9 billion (up 7.9-8.4% on a reported basis from the comparable fiscal 2024 period), lowered from the prior outlook of $21.9 billion-$22.1 billion (up 8.9-9.4% on a reported basis from the comparable fiscal 2024 period). The Zacks Consensus Estimate is pegged at $21.94 billion.

For fiscal 2025, adjusted revenues at CER are expected to continue to reflect growth in the range of 8.8-9.3% from the comparable fiscal 2024 period. Organic revenue growth is continued to be expected between 4% and 4.5% from the comparable fiscal 2024 period.

For the full fiscal year, adjusted EPS is now anticipated to be in the range of $14.30-$14.60 (representing growth of 8.8-11% from the comparable fiscal 2024 period), narrowed from the prior expectations of $14.25-$14.60 (representing growth of 8.5-11% from the comparable fiscal 2024 period). The Zacks Consensus Estimate is pegged at $14.41    .

Our Take

BD exited the first quarter of fiscal 2025 with better-than-expected results. Solid top-line results, along with improvements in organic revenues and bottom-line performances, were impressive. Robust performances by all segments and both geographic regions were encouraging. Strength in BD’s segments' business units during the reported quarter was also promising. The expansion of gross margin bodes well.

Yesterday, the company announced its plans to separate its BDB and DS business from the rest of BD to enhance strategic focus, growth-oriented investments and capital allocation for both BD and the separated business and enhance value creation for shareholders. This looks promising for the stock.

Apart from these, there were a few other developments during the recent period, like the BD Medical segment’s MDS business unit, which announced additional investments in its U.S. manufacturing network to add capacity for critical medical devices and Carilion Clinic becoming the first health system in Virginia to offer needle-free in-patient blood draws using the BD PIVO Pro Needle-free Blood Collection Device. BD Life Sciences segment’s SM business unit announced an expansion of fingertip blood testing for use by U.S. health systems and other large provider networks in settings like urgent cares, doctor offices and other ambulatory care settings. These look promising for the stock.

However, BD’s BDB and PS business units’ performances reflected transitory market dynamics that partially offset the respective revenues during the quarter. This was discouraging. The contraction of the adjusted operating margin raises apprehension.

BDX’s Zacks Rank and Key Picks

BD currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. CAH, ResMed Inc. RMD and Twist Bioscience Corporation TWST.

Cardinal Health, carrying a Zacks Rank of 2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $1.93, beating the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health has a long-term estimated growth rate of 10.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, beating the Zacks Consensus Estimate by 5.7%. Revenues of $1.28 billion surpassed the Zacks Consensus Estimate by 1.6%. It currently carries a Zacks Rank #2.

ResMed has a long-term estimated growth rate of 16%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Twist Bioscience reported first-quarter fiscal 2025 loss per share of 53 cents, narrower than the Zacks Consensus Estimate of a loss of 62 cents per share. Revenues of $88.7 million surpassed the Zacks Consensus Estimate by 2%. It currently carries a Zacks Rank #2.

Twist Bioscience has an estimated growth rate of 38.6% for fiscal 2025. TWST’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 7.7%.

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