Becton Dickinson ($BDX) has provided an optimistic earnings forecast for fiscal 2025, following a strong performance that exceeded Wall Street's expectations in the last quarter of the previous year. The medical technology giant, known for its innovative diagnostic and lab-testing devices, anticipates revenue in the range of $21.9 billion to $22.1 billion for fiscal 2025.
This projection surpasses the Capital IQ consensus which stands at $21.77 billion. Additionally, the company estimates adjusted earnings between $14.25 and $14.60 per share, favorably above the current Street view of $14.30. "Our growth strategy remains focused on delivering solutions for our customers that leverage significant shifts in technology, like biologics, AI and automation, that are revolutionizing patient care," stated Chief Executive Tom Polen in a formal announcement. This encouraging outlook follows a noteworthy performance in the fiscal fourth quarter, where revenues rose 6.9% year over year, totaling $5.44 billion, surpassing the Capital IQ consensus of $5.38 billion.
Adjusted earnings for the quarter increased to $3.81 a share from $3.42 the previous year, exceeding projections for $3.77. The company’s medical segment, which was bolstered by the acquisition of Edwards Lifesciences' (EW) critical care segment, reported an 11% jump, reaching $2.84 billion. This $4.2 billion acquisition was completed in September and has since contributed to the company’s growth. In the life sciences sector, revenue saw a modest increase of 0.7%, climbing to $1.34 billion, primarily driven by integrated diagnostic solutions.
However, the biosciences business unit has experienced "lower market demand" for its research instruments. The interventional segment, which covers surgical devices, urology, and critical care, witnessed a revenue rise of 4.7%, amounting to $1.26 billion. While international sales have also grown, they did so at a slower rate compared to the US, with an increase of 5.1% contrasted with the domestic growth of 8.3%.
Becton Dickinson has indicated that its organic revenue guidance for fiscal 2025 expects growth between 4% to 4.5%, factoring in predicted declines in China and various market dynamics affecting bioscience and pharmaceuticals. In fiscal 2024, organic revenue growth was recorded at 5%. Price: 237.23, Change: +1.99, Percent Change: +0.85.