Summary
Becton, Dickinson and Company (BDX) filed its 2017 10-K, reporting on its fiscal year ending September 29, 2017. The company, a global medical technology firm, operates through two main segments: BD Medical and BD Life Sciences. A significant development during the year was the announcement of the definitive agreement to acquire C. R. Bard, Inc. for approximately $24 billion, a transaction expected to close in the fourth quarter of 2017. This acquisition aims to create a more differentiated medical technology company. Financially, revenues for fiscal year 2017 were $12.093 billion, a decrease of 3.1% from the prior year, primarily due to the divestiture of the Respiratory Solutions business. Despite the revenue dip, the company continued to invest in research and development ($774 million) and returned value to shareholders through dividends and share repurchases. The company's financial position remains strong, with significant cash on hand, bolstered by equity and debt issuances to support the upcoming Bard acquisition. Management expressed confidence in its ability to fund operations and strategic initiatives, while acknowledging risks related to the integration of acquisitions and global economic conditions.
Financial Highlights
56 data points| Revenue | $12.09B |
| Cost of Revenue | $6.13B |
| Gross Profit | $5.94B |
| R&D Expenses | $770.00M |
| SG&A Expenses | $2.91B |
| Operating Expenses | $10.57B |
| Operating Income | $1.52B |
| Interest Expense | $521.00M |
| Net Income | $1.10B |
| EPS (Basic) | $4.70 |
| EPS (Diluted) | $4.60 |
| Shares Outstanding (Basic) | 218.94M |
| Shares Outstanding (Diluted) | 223.59M |
Key Highlights
- 1Announced definitive agreement to acquire C. R. Bard, Inc. for approximately $24 billion, expected to close in Q4 2017.
- 2Reported fiscal year 2017 revenues of $12.093 billion, a 3.1% decrease year-over-year, largely attributed to the divestiture of the Respiratory Solutions business.
- 3Invested $774 million in Research and Development (R&D) to drive innovation and platform extensions.
- 4Maintained a strong financial position with $14.2 billion in cash and short-term investments at fiscal year-end.
- 5Returned value to shareholders through dividends ($677 million) and share repurchases ($220 million).
- 6Operated under two main segments: BD Medical and BD Life Sciences, with continued volume growth in continuing businesses.
- 7Acknowledged risks related to foreign currency exchange rates, competition, regulatory changes, and the integration of the pending Bard acquisition.