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Becton Dickinson Beats Q2 Estimates (BDX)

Becton, Dickinson and Co. (NYSE: BDX) reported on Thursday that fiscal second-quarter earnings fell 5.3% as the Company’s bottom line was weighed down new medical device tax.

However shares of the medical devices maker gained as adjusted earnings and revenue topped analysts’ consensus estimates. The Company also provided upbeat outlook on the full-year fiscal, citing its new acquisitions and new product developments.

While Becton Dickinson maintained its full-year revenue guidance which between 4.5% to 5% growth, it raised its earlier earnings forecast by 3 cents to a new range of $5.72 to $5.75. Analysts’ consensus was at $5.71 a share.

The Franklin Lakes, NJ based Company, which specializes on products ranging syringes to infection detecting devices, has seen its top line feeling the pressure in the recent past due to global macroeconomic uncertainty. Besides, restructuring and acquisition related costs also put pressure on the bottom line.

Earlier in March, Becton Dickinson acquired Cato Software Solution, which develops medication safety software maker.

For the fiscal second quarter which ended March 31, Becton Dickinson reported net income of $275.6 million, compared to $291 million, in the same quarter of last year.

EPS stood flat at $1.39 as there were fewer shares outstanding in the recently concluded quarter.

Excluding onetime items such as medical device tax which came into effect from January, adjusted earnings came at $1.44 a share up from $1.31 a share, in the year-earlier quarter.

Revenue during the quarter increased 3.7% to $2 billion.

Analysts’ consensus estimate was for earnings of $1.35 a share on revenue of $1.99 billion, according to a data compiled by Thomson Reuters.

Operating margin contracted to 19.1% from 19.9%, in the year-earlier quarter.

Revenue climbed 4% o $1.06 billion in medical unit, it rose 4.6% in diagnostics unit while it edged up 0.6% in biosciences division.

The stock was up about 3% by early trade on Thursday. Several analysts have commented on the stock, lately. On April 12th, analysts at Deutsche Bank raised price target on the stock to $94 from $89. The firm has a “hold” rating. Earlier, on April 2, analysts at Macquarie maintained “neutral” rating on the stock and set a price target of $98.




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