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BD's base business growth in the third quarter was offset by a decline in COVID-19 testing

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in numbers

Third quarter revenue: $4.64 billion

0.7% YoY increase on a reported basis

Base Revenue: $4.57 billion

6% YoY increase

COVID-19 test revenue: $76 million

75% decrease from the previous year

Third Quarter Trends: Becton Dickinson’s third quarter earnings were relatively flat compared to 2021. This was as base business growth was offset by a 75% year-over-year decline in COVID-19 test sales. Chief Executive Tom Polen said on Thursday’s earnings call that the industry faces the same challenges as managing: inflation, supply chain constraints, shortages of medical staff, rising labor costs and a slowdown in China. said the company was affected, but the underlying business is still growing from last quarter.

Analysts at Stifel wrote in a note Thursday that BD’s earnings of $4.64 billion last quarter beat the investment firm’s estimates by about $170 million.

COVID-19 test: JP Morgan said coronavirus testing revenue fell by about $224 million year-over-year in the last quarter, but sales still beat analyst expectations. Analysts wrote in a note on Thursday that his $76 million sales for BD exceeded them by about $44 million. For the full year, the company expects he will see increased COVID-19 sales, raising its forecast by about $50 million to a total of $500 million.

Still, the slowdown in testing demand is expected to continue through the rest of the fiscal year and into 2023. “significantly lower” than 2022. DelOrefice says quarterly sales are likely to be around $25 million. So far this year, COVID-19 testing revenue has totaled about $475 million.

Revenue forecast for 2022: BD has raised its full-year earnings forecast to a range of $18.75 billion to $18.83 billion, compared with previously announced revenues of $18.5 billion to $18.7 billion. The underlying business forecast increased by $215 million at the midpoint.

On Thursday morning, the company’s stock rose more than 2% to $250.15.

Chinese recovery: Polen told investors that a slowdown in China due to restrictions put in place to stem the spread of the coronavirus continued into BD’s third quarter, but the market recovered faster than expected and was strong in June. He said he made a recovery. “Beyond the restoration of hospital patient flows, we have initiated several actions to continue manufacturing and keep the majority of our warehouses operational by working closely with our stakeholders in China. I did,” Polen said.

Trends for 2023: DelOrefice said it expects macroeconomic challenges to continue in fiscal 2023, which normally begins in October. However, the CFO added that economic challenges were not expected to worsen next year and could improve in the second half of the year, including current complexity and supply chain challenges.