Becton Dickinson (BDX) has announced fourth-quarter and fiscal 2010 adjusted (excluding one-time items) earnings per share of $1.24 and $4.94, respectively, falling short of the corresponding Zacks Consensus Estimates of $1.25 and $5.10 while surpassing the year-ago figures of $1.20 and $4.76, respectively. Net income (on a reported basis) for the quarter surged 25% year over year to $396.7 million.
Becton Dickinson recorded revenues of $1.87 billion for the reported quarter, up 1% year over year (or 2.9% in constant currency), roughly matching the Zacks Consensus Estimate of $1.87 billion. For fiscal 2010, the company had revenue of $7.37 billion, up about 5.5% on both nominal and constant currency basis, but falling short of the Zacks Consensus Estimate of $7.49 billion.
Domestic sales amounted to $832 million, up 1.4% year over year, which includes a negative impact of 1.8% from the flu pandemic. Ex-U.S. revenues were $1.04 billion, up 0.8% (or 4.2% in constant currency), which includes a negative impact of 4% from the flu pandemic in fiscal 2009. Becton Dickinson experienced higher growth in emerging markets, offset by a slowdown in European markets.
Results by Segment
In BD Medical, global revenues were $959 million, down 0.3% year over year (up 2.1% in constant currency) in the reported quarter. Higher revenues from Diabetes Care products was more than offset by an unfavorable comparison of 4.3% due to sales related to the H1N1 flu pandemic in fiscal 2009.
Among the sub-segments, Medical Surgical Systems was down 0.9% year over year (in constant currency) to $502 million in the fourth quarter, Diabetes Care was up sharply 11.7% to $199.1 million and Pharmaceutical Systems inched up 1.2% to $257.5 million.
In BD Diagnostics, global sales were $591 million, up 2% (or 3.1% in constant currency). In addition to lower lab testing and reduced physician office visits, segment revenue growth was adversely affected by 240 bps due to the H1N1 flu pandemic in the prior-year quarter.
With regard to the sub-segments, Preanalytical Systems moved up 5.4% to $306.4 million and Diagnostic Systems dipped marginally by 0.7% to $285 million.
In BD Biosciences, global sales were $323 million, up 3.5% (or 5.3% in constant currency). The favorable outcome was driven by cell analysis instrument as well as reagent sales.
As for the sub-segments, Cell Analysis moved up sharply by 7.8% to $247 million and Discovery Labware dropped 1.9% to $76.1 million.
Margins
Becton Dickinson reported an operating margin of 21.9% in the reported quarter, lower than 22.9% in the prior-year quarter.
Sale of Assets
Becton Dickinson completed the sale of its Ophthalmic Systems unit as well as critical care and certain other product platforms, such as surgical blades. The results of these operations have been reclassified as discontinued activities for preceding quarters.
Outlook
Becton Dickinson forecasts revenues to grow 4% year over year in fiscal 2011. The company projects reported earnings per share from continuing operations to grow about 11% to 13% to a range of $5.45 to $5.55. It expects adjusted earnings per share from continuing operations to grow in a band of 10% to 12% for fiscal 2011.
BECTON DICKINSO (BDX): Free Stock Analysis Report
Zacks Investment Research
