NYSE$BDX

Becton Dickinson & Co. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong performance and progress toward achieving BD 2025 strategy, while advancing innovation pipeline and receiving clearance for updated BD Alaris™ Infusion System.

BD reported a revenue of $4.9 billion, a 5.1% increase as reported and 6.3% on a currency-neutral basis. The company raised its full-year base organic revenue growth guidance and maintained its full-year adjusted EPS guidance.

  • Revenue of $4.9 billion increased 5.1% as reported and 6.3% on a currency-neutral basis
  • Revenue from base business (which excludes COVID-only diagnostic testing) grew 6.7% as reported, 7.9% currency-neutral or 6.3% organic
  • GAAP and adjusted diluted EPS from continuing operations of $1.36 and $2.96, respectively
  • Company raises full-year base organic revenue growth guidance; maintains full-year adjusted EPS guidance

Headline financials

Total Revenue

$4.88B

Previous: $4.64B+5.1%
EPS (adj)

$2.96

Previous: $2.66+11.3%
Capital Expenditures

-$580M

Previous: -$658M+11.9%
Free Cash Flow

-$173M

Previous: -$298M+41.9%
Net Income

$407M

Previous: $360M+13.1%
Operating Income

$549M

Previous: $537M+2.2%
Gross Profit

$2.1B

Previous: $2.07B+1.6%
Cash & Equivalents

$923M

Previous: $2.56B-63.9%
Total Assets

$53B

Previous: $53.2B-0.3%
Stock-Based Comp

$56M

Previous: $44M+27.3%

Revenue & EPS history

BD · Revenue · Quarterly

$4.88B

Q3 2023+5.1%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

BD · $2.53B total across 2 segments · Q4 2023

  • BD Life Sciences
    $1.33B+3.3%
  • BD Interventional
    $1.2B+9.7%

Forward guidance

The company now expects fiscal year 2023 revenues to be approximately $19.3 billion. Adjusted diluted EPS guidance of $12.10 to $12.32 remains unchanged but reflects absorbing a $0.02 negative impact from the divestiture of the Surgical Instrumentation platform and a $0.05 negative impact from the latest foreign currency rates.

Tailwinds

  • Revenue guidance now assumes base business currency-neutral revenue growth of 6.8% to 7.1% before the impact of the Surgical Instrumentation platform divestiture.
  • Base organic revenue growth is now expected to be 5.5% to 5.8%, compared to 5.25% to 5.75% previously announced, and continues to reflect fourth quarter organic revenue growth of about 6%.
  • Adjusting for the impact of the Surgical Instrumentation platform divestiture lowers the updated base revenue growth guidance by 20 basis points to a range of 6.6% to 6.9%.
  • Increased base organic revenue growth guidance of 5.5% to 5.8% is not impacted.
  • On a currency-neutral basis, adjusted diluted EPS guidance now represents growth of approximately 10% to 11.5%, an increase of 50 basis points from the company's prior expectation.

Headwinds

  • Revenue guidance includes $56 million in year-to-date COVID-only diagnostic testing revenues.
  • Based on current rates, foreign exchange continues to represent a reduction of approximately 200 basis points, or approximately $370 million, to total company revenue growth.
  • Adjusted EPS guidance reflects absorbing a $0.02 negative impact from the divestiture of the Surgical Instrumentation platform
  • Adjusted EPS guidance reflects absorbing a $0.05 negative impact from the latest foreign currency rates.
  • Adjusted diluted EPS guidance now includes an estimated headwind from foreign currency of approximately 320 basis points based on current rates, compared to 270 basis points previously.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.9%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-0.5%

Avg return

30 days after

38%

28 / 73 earnings

Positive

+8.9%

Q3 2025

Best reaction

-18.1%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.7%-1.1%+4.6%
Q1 2026-1.3%+6.5%-1.2%
Q4 2025+0.6%+7.2%+10.0%
Q3 2025+8.9%+13.1%+11.6%
Q2 2025-18.1%-20.3%-16.7%
Q1 2025-6.3%-5.3%-5.3%
Q4 2024-3.5%-3.7%-8.3%
Q3 2024+0.3%-2.3%+0.6%
Q2 2024+0.4%+1.5%-0.7%
Q1 2024-0.7%-0.1%-1.5%
Q4 2023-8.3%-8.8%-9.2%
Q3 2023-2.0%+1.8%+0.8%
Q2 2023-3.8%-5.3%-4.5%
Q1 2023-3.3%-0.4%-6.7%
Q4 2022+4.3%+1.9%+13.4%
Q3 2022+3.8%+4.2%+3.2%
Q2 2022+1.7%-1.4%-0.5%
Q1 2022+4.7%+7.7%+7.3%
Q4 2021-1.3%-1.4%-1.2%
Q3 2021-5.4%-6.3%+1.2%
Q2 2021-4.2%-3.4%-3.6%
Q1 2021-2.4%-2.6%-5.5%
Q4 2020-0.1%+1.5%+2.5%
Q3 2020-9.5%-10.0%-17.4%
Q2 2020-1.8%+1.1%-6.6%
Q1 2020-13.7%-10.3%-16.4%
Q4 2019-3.8%-6.1%-0.7%
Q3 2019+3.5%+7.6%+9.4%
Q2 2019-3.0%-4.1%+2.6%
Q1 2019-1.7%-2.0%-0.2%
Q4 2018-0.2%+2.5%+1.6%
Q3 2018-1.1%-0.8%+4.7%
Q2 2018-2.4%-3.8%-2.3%
Q1 2018-1.3%-3.4%-0.6%
Q4 2017+7.9%+6.3%+8.8%
Q3 2017-1.9%-2.1%-0.9%
Q2 2017-1.4%-0.5%+3.5%
Q1 2017+0.2%-0.1%+3.2%
Q4 2016+4.9%+7.1%-0.8%
Q3 2016-1.2%-0.9%+0.9%
Q2 2016+2.0%
Q1 2016-4.9%
Q4 2015+3.8%
Q3 2015-3.2%
Q2 2015+0.7%
Q1 2015+2.4%
Q4 2014-0.2%
Q3 2014-2.8%
Q2 2014-0.4%
Q1 2014+1.8%
Q4 2013+0.5%
Q3 2013-2.1%
Q2 2013+4.1%
Q1 2013+3.2%
Q4 2012-4.3%
Q3 2012-1.1%
Q2 2012+0.0%
Q4 2011-4.6%
Q1 2012+1.2%
Q3 2011-2.6%
Q2 2011-1.0%
Q1 2011-0.5%
Q4 2010+2.0%
Q3 2010+1.6%
Q2 2010-2.6%
Q1 2009+0.5%
Q1 2010-1.4%
Q4 2007-1.2%
Q2 2009-1.2%
Q4 2009-1.2%
Q3 2009+2.5%
Q3 2008+2.5%
Q4 2008+2.5%

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