BD Q4 2022 Earnings Report
Key Takeaways
BD reported Q4 revenue of $4.761 billion, a decrease of 1.8% as reported, but an increase of 2.3% on a currency-neutral basis. The revenue performance was driven by a base revenue growth of 4.2% as reported, and 8.6% currency-neutral. GAAP diluted EPS was $0.92 and adjusted diluted EPS was $2.75. The company issued FY23 guidance and announced its 51st consecutive year of dividend increases, raising the dividend by 4.6%.
Q4 revenue decreased by 1.8% as reported, but increased by 2.3% on a currency-neutral basis.
Base revenue growth was 4.2% as reported and 8.6% on a currency-neutral basis.
GAAP diluted EPS was $0.92, while adjusted diluted EPS was $2.75.
FY23 revenue is expected to be in the range of $18.6 billion to $18.8 billion.
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BD Revenue by Segment
Forward Guidance
The company expects fiscal year 2023 revenues to be in the range of approximately $18.6 billion to $18.8 billion and adjusted diluted EPS to be $11.85 to $12.10.
Positive Outlook
- Revenue guidance assumes base business currency-neutral revenue growth of 5.25% to 6.25%.
- Base business revenue guidance reflects continued momentum as we execute our BD 2025 growth strategy.
- Base business revenue guidance includes an anticipated impact of approximately 100 basis points from an acceleration of our simplification and RECODE programs related to planned strategic portfolio exits.
- This impact is expected to be fully offset by the positive contribution of approximately 100 basis points from the full-year benefit of recent acquisitions, primarily Parata Systems.
- The company expects adjusted diluted EPS growth of approximately 9% to 11% on a currency-neutral basis.
Challenges Ahead
- Revenue guidance assumes approximately $125 to $175 million in COVID-19-only diagnostic testing revenues.
- Foreign exchange would represent a reduction of approximately 450 basis points to total company revenue growth.
- This includes an estimated impact from foreign currency of approximately 420 basis points based on current rates.
- The company's expected adjusted diluted EPS for fiscal 2023 excludes potential charges or gains that may be recorded during the fiscal year.
- The impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income