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Sep 30, 2023

BD Q4 2023 Earnings Report

BD reported strong Q4 2023 financial results driven by the execution of its BD2025 strategy.

Key Takeaways

BD reported Q4 revenue of $5.1 billion, a 6.8% increase as reported and a 5.9% increase on a currency-neutral basis. GAAP EPS was $0.53 and adjusted diluted EPS was $3.42. The company issued FY24 guidance, including 5.75% organic revenue growth at the midpoint of the 5.25% to 6.25% range.

Q4 revenue increased 6.8% as reported and 5.9% on a currency-neutral basis.

Q4 revenue from base business grew 7.3% as reported and 6.3% currency-neutral.

Q4 GAAP EPS was $0.53 and adjusted diluted EPS was $3.42.

The company issued FY24 guidance including 5.75% organic revenue growth at midpoint of 5.25% to 6.25% range.

Total Revenue
$5.09B
Previous year: $4.76B
+6.8%
EPS
$3.42
Previous year: $2.75
+24.4%
Base Organic Revenue Growth
7%
Gross Profit
$1.7B
Previous year: $2.08B
-18.1%
Cash and Equivalents
$1.42B
Previous year: $1.01B
+40.8%
Free Cash Flow
$1.05B
Total Assets
$52.8B
Previous year: $52.9B
-0.3%

BD

BD

BD Revenue by Segment

BD Revenue by Geographic Location

Forward Guidance

The company expects fiscal year 2024 revenues to be in the range of approximately $20.1 billion to $20.3 billion and adjusted diluted EPS to be $12.70 to $13.00.

Positive Outlook

  • Organic revenue growth is expected to be 5.25% to 6.25% including a headwind of over 25 basis points from the expected decline in COVID-only diagnostic testing.
  • Total currency-neutral revenue growth is expected to be 4.5% to 5.5%.
  • Adjusted diluted EPS guidance represents growth of approximately 4% to 6.5%.
  • On a currency-neutral basis, adjusted diluted EPS guidance represents growth of approximately 8.25% to 10.25%.
  • The company expects fiscal year 2024 revenues to be in the range of approximately $20.1 billion to $20.3 billion.

Challenges Ahead

  • Organic revenue growth includes a headwind of over 25 basis points from the expected decline in COVID-only diagnostic testing.
  • Total currency-neutral revenue growth reflects a negative impact of approximately 75 basis points from the impact of the Surgical Instrumentation platform divestiture.
  • Foreign exchange represents a reduction of approximately 75 basis points to total company revenue growth.
  • Adjusted diluted EPS includes absorbing an estimated 75 basis point negative impact from the divestiture of the Surgical Instrumentation platform.
  • Adjusted diluted EPS includes approximately 375 basis-points negative impact from foreign currency based on current rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income