Becton, Dickinson and Company (BDX) reported second quarter fiscal 2010 earnings per share of $1.27, surpassing the Zacks Consensus Estimate of $1.23 and the year-ago earnings of $1.17. 
 
Sales
 
Total revenues in the second quarter increased 7.0% year over year to $1.845 billion. Excluding foreign currency translation, total revenues increased 6.6% year over year. Growth was registered across all business segments.
 
BD Medical revenues increased 9.7% year over year to $967 million. Growth can be attributed to higher sales of Pharmaceutical Systems and Diabetes Care products.
 
BD Diagnostics revenues increased 3.0% year over year to $556 million. Growth was primarily due to higher demand for the company’s cancer and STD products.
 
BD Biosciences sales increased 6.0% year over year to $322 million due to higher demand for the company’s Cell Analysis and Discovery Labware products.
 
Becton derived the bulk of its revenues from international operations. International revenues were 56% of total revenues and increased 7.7% year over year. Domestic revenues increased 6.0% year over year.
 
Margins
 
Gross margin remained flat year over year at 51.9% in the second quarter. Operating margin increased 240 basis points year over year to 23.3%.
 
Outlook
 
Becton expects fiscal 2010 revenues to increase by roughly 6% year over year, compared to the previous guidance of 7%. The company has reaffirmed its adjusted earnings per share guidance. Becton expects adjusted earnings per share in fiscal 2010 to increase by approximately 2% to 4% year over year to $5.05 – $5.15.
 
Becton, Dickinson and Company develops, manufactures, and markets medical devices, supplies, laboratory equipment, and diagnostic products globally. The company is a world leader in safety needle products. Becton’s primary competitors are Baxter International Inc. (BAX), Johnson & Johnson (JNJ), and Abbott Laboratories (ABT).
 
Presently, we have a ‘Neutral’ recommendation on Becton.
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