BD Q2 2022 Earnings Report
Key Takeaways
BD (Becton, Dickinson and Company) announced results for its second quarter of fiscal year 2022. Revenue of $5.0 billion increased 2.1% as reported and 3.9% on a currency-neutral basis. GAAP diluted EPS was $1.50 and adjusted diluted EPS was $3.18. The company raised the mid-point of its full-year revenue and adjusted EPS guidance ranges, adjusting for the completed spin of Diabetes Care business.
Revenue of $5.0 billion increased 2.1% as reported and 3.9% on currency-neutral basis
Revenue driven by base revenue growth of 8.2% as reported, 10.2% currency-neutral, partially offset by decline in worldwide COVID-only testing revenues to $214 million from $474 million in the prior year
GAAP diluted EPS of $1.50; adjusted diluted EPS of $3.18
Company raises mid-point of revenue and adjusted EPS guidance ranges; Adjusts for completed spin of Diabetes Care business
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BD Revenue by Geographic Location
Forward Guidance
The company raised the mid-point of its full-year revenue and adjusted EPS guidance ranges, and adjusted for the completed spin of Embecta Corp. On a post-spin basis the company expects fiscal year 2022 revenues to be in the range of approximately $18.5 billion to $18.7 billion and adjusted diluted EPS to be $11.15 to $11.30.
Positive Outlook
- Revenue guidance for fiscal year 2022 assumes base business currency-neutral revenue growth of 7.25% to 8.25%.
- Growth was also aided by the recent acquisition of Venclose.
- UCC performance was primarily driven by continued strong demand for chronic female incontinence products in the acute care & alternative care settings.
- PI performance reflects growth in the U.S. across the peripheral vascular disease, end stage kidney disease and oncology platforms and double-digit growth in China across the portfolio.
- Surgery performance reflects growth across the hernia, biosurgery and infection prevention platforms as deferrable procedure volumes recovered compared to the prior year.
Challenges Ahead
- Revenue guidance for fiscal year 2022 now assumes approximately $450 million in COVID-19-only diagnostic testing revenues.
- Foreign exchange would represent a headwind of approximately 200 basis points to total company revenue growth.
- Management’s outlook assumes continued inflationary and supply chain pressure over the balance of the fiscal year.
- There should be no further significant escalation of macro-economic headwinds.
- Management’s outlook assumes no significant or lasting disruptions to deferrable procedure volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income