Becton, Dickinson, and Company BDX lowered its fiscal year 2025 guidance and provided an estimated tariff impact on Thursday.
The medical device giant reported adjusted earnings per share of $3.35, up from $3.17 reported a year ago, beating the consensus of $3.28.
The company reported first-quarter 2025 sales of $5.27 billion, up 4.5% year-over-year, missing the consensus of $5.35 billion.
“Amid a difficult operating environment impacting near-term organic revenue growth, our Q2 results reflect the strength of our business model and ability to exceed our earnings expectations through quality gross margin improvement,” said Tom Polen, chairman, CEO and president of BD.
“Our BD Excellence operating system is driving continued margin expansion and increasing investment in our commercial organization and innovation, and we believe we are well positioned to accelerate growth as markets recover. As we take decisive mitigation actions to navigate the current macro environment, BD’s scale as the largest U.S. manufacturer of medical devices is a significant advantage for long-term value creation.”
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In February, BD shared its plan to separate its Biosciences and Diagnostic Solutions business from the rest of the company to enhance strategic focus, growth-oriented investments and capital allocation.
Following the separation, New BD will be a pure-play medical technology company. It expects to drive concentrated investments in high-impact R&D and disciplined capital allocation, including growth-accretive M&A.
Medical segment sales increased 12.7% year over year to $2.76 billion, Life Sciences sales reached $1.25 billion, down 4.3%, and Interventional sales fell 2.2% to $1.26 billion.
Becton, Dickinson also announced its intention to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years, further strengthening its position as the largest U.S. manufacturer of medical devices and its commitment to ensuring a resilient U.S. healthcare system.
Guidance: BD expects fiscal 2025 revenues of $21.8 billion and $21.9 billion compared to a consensus of $21.83 billion and its previously issued guidance of $21.7 billion to $21.9 billion, reflecting updated organic revenue growth guidance of 3.0% to 3.5% and an improvement in the estimated impact of foreign currency.
Before the impact of tariffs, the company expects adjusted diluted EPS to be consistent with its previously issued guidance of $14.30 to $14.60, representing growth of 8.8% to 11.0%. It includes absorbing a headwind from translational foreign currency for approximately $0.05 or 40 basis points for the full year.
Including an estimated tariff impact of approximately $0.25 for the fiscal year, the company now expects adjusted earnings of $14.06 to $14.34, compared to the consensus of $14.42.
The estimated tariff impact is based on current information and tariff programs announced as of April 30, not including announced tariff programs that are delayed or threatened, the company said in its Thursday press release.
Price Action: BDX stock is down 5.36% at $196 during the premarket session at the last check Thursday.
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