HomeMarket NewsAnticipating Becton, Dickinson and Company's Q1 2025 Earnings Report: Insights and Projections

Anticipating Becton, Dickinson and Company’s Q1 2025 Earnings Report: Insights and Projections

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Becton, Dickinson Gears Up for First Quarter Earnings, Analysts Maintain Optimism

Franklin Lakes, New Jersey-based Becton, Dickinson and Company (BDX) develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products. With a market cap of $68.5 billion, the company operates through three main segments: BD Medical, BD Life Sciences, and BD Interventional.

Earnings Expectations for Q1

The healthcare giant is set to announce its first-quarter earnings on Thursday, February 6. Analysts predict that BDX will report a non-GAAP profit of $2.98 per share, marking an 11.2% increase from the $2.68 reported during the same quarter last year. Notably, the company has consistently exceeded Wall Street’s earnings estimates for the past four quarters. In the latest reported quarter, its adjusted earnings per share (EPS) leaped 11.4% year-over-year to $3.81, surpassing analyst expectations by 1.1%.

Future Earnings Projections

Looking ahead to fiscal 2025, BDX is anticipated to achieve an adjusted EPS of $14.43, a 9.8% increase from $13.14 in fiscal 2024. Earnings are predicted to grow further in fiscal 2026, reaching $15.69 per share, reflecting an 8.7% year-over-year growth.

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Stock Performance Overview

Over the past year, BDX stock has declined minimally by 20 basis points, slightly outperforming the Healthcare Select Sector SPDR Fund’s (XLV) decline of 37 basis points, but trailing behind the S&P 500 Index’s ($SPX) gain of 22.1% during the same period.

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Recent Earnings Report Reaction

Even after beating Wall Street’s revenue and earnings expectations, Becton, Dickinson’s stock fell 5.4% following its fourth-quarter earnings release on November 7. The company’s Medication Management Solutions reported impressive revenue growth of 23.6% year-over-year in the U.S., totaling $744 million, contributing to an overall revenue increase of 6.9% to $5.4 billion. A significant 13.7% reduction in the cost of products sold to $2.9 billion helped expand BDX’s operating margins by 509 basis points to nearly 12%, resulting in an extraordinary 86.2% year-over-year growth in operating income to $650 million.

Guidance and Analyst Sentiment

Despite the strong earnings, concerns over lower sales expectations in China and fluctuating market dynamics in Bioscience and Pharma led BDX to provide a modest organic sales growth outlook of 4% to 4.5% for the full year, which has caused some unease among investors. However, analysts remain confidently positive about the company’s long-term potential. Out of the 17 analysts monitoring BDX, 14 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and two advise holding the stock. The average price target stands at $275.87, representing a 17% potential upside from current price levels.

On the date of publication, Aditya Sarawgi did not hold positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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