Summary
Becton, Dickinson and Company (BDX) reported a significant increase in revenues for the fiscal year ended September 30, 2018, largely driven by the transformative acquisition of C.R. Bard, Inc. (Bard) completed in December 2017. This strategic move has positioned BD as a more comprehensive medical technology provider across its three key segments: Medical, Life Sciences, and Interventional. While the integration of Bard presents opportunities for growth and synergies, it also introduces integration costs and increased debt levels, which management is actively working to manage. Financially, the company experienced substantial revenue growth, fueled by the Bard acquisition and organic volume growth across its segments, particularly in Medication Delivery Solutions and Diagnostic Systems. However, diluted earnings per share were significantly impacted by "specified items," including substantial integration and acquisition-related costs, and a large one-time tax expense due to the U.S. Tax Cuts and Jobs Act. Investors should closely monitor the ongoing integration process, management's ability to realize cost savings, and the impact of regulatory matters, including FDA warning letters, on future performance.
Financial Highlights
55 data points| Revenue | $15.98B |
| Cost of Revenue | $8.71B |
| Gross Profit | $7.27B |
| R&D Expenses | $1.00B |
| SG&A Expenses | $4.02B |
| Operating Expenses | $14.47B |
| Operating Income | $1.51B |
| Interest Expense | $706.00M |
| Net Income | $311.00M |
| EPS (Basic) | $0.62 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 258.35M |
| Shares Outstanding (Diluted) | 264.62M |
Key Highlights
- 1BD completed the acquisition of C.R. Bard, Inc. for approximately $25 billion, significantly expanding its product portfolio and market reach, particularly in the Interventional segment.
- 2Worldwide revenues increased by 32.2% to $15.98 billion in fiscal year 2018, largely due to the inclusion of Bard's revenues and organic volume growth.
- 3The company recorded a significant one-time tax expense of $640 million related to the U.S. Tax Cuts and Jobs Act, which heavily impacted net income and diluted EPS for the year.
- 4Diluted earnings per share were significantly affected by "specified items," including integration costs, purchase accounting adjustments, and other restructuring expenses, resulting in a reported diluted EPS of $0.60.
- 5BD continued to invest in research and development, with R&D expenses totaling $1.006 billion, reflecting a commitment to innovation and new product development.
- 6The company's financial position remained strong, with $2.865 billion in cash flow from operating activities, and it returned value to shareholders through $927 million in dividends paid during fiscal year 2018.
- 7The company is managing regulatory matters, including two FDA warning letters for specific facilities and products, and an ongoing consent decree related to its infusion pump business, with plans to implement corrective actions.