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Mar 31, 2023

BD Q2 2023 Earnings Report

BD reported second quarter fiscal year 2023 financial results, driven by strategic investments and innovation.

Key Takeaways

BD reported revenue of $4.8 billion, a 1.5% increase as reported and 4.1% on a currency-neutral basis. The company raised its full-year base revenue guidance, enabling additional investments in growth and innovation while absorbing lower COVID-only diagnostic testing revenue and incremental FX impacts.

Revenue increased 1.5% as reported and 4.1% on a currency-neutral basis.

Base business revenue (excluding COVID-only diagnostic testing) grew 6.0% as reported, 8.7% currency-neutral.

GAAP and adjusted diluted EPS from continuing operations were $1.53 and $2.86, respectively.

The company raised full-year base revenue guidance, enabling additional investments in growth and innovation.

Total Revenue
$4.82B
Previous year: $5.01B
-3.8%
EPS
$2.86
Previous year: $3.18
-10.1%
Base Organic Revenue Growth
4.3%
Previous year: 7.6%
-43.4%
Gross Profit
$2.24B
Previous year: $2.31B
-3.0%
Cash and Equivalents
$1.98B
Previous year: $3.15B
-37.1%
Total Assets
$54.4B
Previous year: $54.8B
-0.7%

BD

BD

BD Revenue by Geographic Location

Forward Guidance

The company raised the lower-end and mid-point of its full-year revenue and adjusted EPS guidance ranges.

Positive Outlook

  • Fiscal year 2023 revenues are expected to be in the range of approximately $19.2 billion to $19.3 billion.
  • Base business currency-neutral revenue growth of 6.5% to 7.0%.
  • COVID-only diagnostic testing revenues of approximately $50 million.
  • Fiscal year 2023 adjusted diluted EPS to be $12.10 to $12.32.
  • On a currency-neutral basis, adjusted diluted EPS guidance now represents growth of approximately 9.5% to 11%.

Challenges Ahead

  • Foreign exchange continues to represent a reduction of approximately 200 basis points, or approximately $370 million, to total company revenue growth.
  • Adjusted diluted EPS guidance now includes an estimated headwind from foreign currency of approximately 270 basis points.
  • Lower COVID-only diagnostic testing revenue.
  • Incremental foreign currency headwind.
  • Numerous assumptions about many factors that could affect its business

Revenue & Expenses

Visualization of income flow from segment revenue to net income