Summary
Becton Dickinson & Co. (BDX) reported a significant increase in revenue for the third quarter of fiscal year 2016, reaching $3.07 billion, a 49.6% rise compared to the prior year. This growth was largely driven by the inclusion of CareFusion's results, acquired in March 2015, which contributed $1.017 billion in revenue. Excluding the impact of foreign currency translation, the company saw a substantial 55.1% revenue increase on a constant currency basis. Despite the strong revenue growth, investors should note the impact of acquisition-related costs, particularly the amortization of intangible assets from the CareFusion acquisition, which affected gross profit margins. The company generated $1.02 billion in operating cash flow for the first six months of the fiscal year, demonstrating solid cash generation. BDX continued to return value to shareholders through dividends, distributing $280 million in the first half of the fiscal year, though no shares were repurchased during this period. Overall, the report highlights the significant integration of CareFusion and its impact on top-line growth, while managing the associated costs.
Financial Highlights
52 data points| Revenue | $3.07B |
| Cost of Revenue | $1.58B |
| Gross Profit | $1.48B |
| R&D Expenses | $182.00M |
| SG&A Expenses | $732.00M |
| Operating Expenses | $2.60B |
| Operating Income | $466.00M |
| Interest Expense | $99.00M |
| Net Income | $338.00M |
| EPS (Basic) | $1.59 |
| EPS (Diluted) | $1.56 |
| Shares Outstanding (Basic) | 212.47M |
| Shares Outstanding (Diluted) | 216.54M |
Key Highlights
- 1Total revenues for the three months ended March 31, 2016, increased by 49.6% to $3.067 billion, largely due to the inclusion of CareFusion's revenue ($1.017 billion).
- 2Operating income for the Medical segment increased by 62.5% to $513 million, benefiting from the CareFusion acquisition, while the Life Sciences segment's operating income saw a modest 1% increase to $202 million.
- 3Net cash provided by operating activities was $1.02 billion for the six months ended March 31, 2016, a significant increase from $514 million in the prior year, indicating strong cash generation.
- 4The company paid $280 million in dividends to shareholders during the first six months of fiscal year 2016, with no share repurchases during this period.
- 5Gross profit margin decreased from 51.0% in the prior year to 48.4% for the three months ended March 31, 2016, primarily due to increased amortization expenses related to the CareFusion acquisition ($116 million for the quarter).
- 6Selling and administrative expenses as a percentage of revenue decreased from 24.9% to 23.9% for the three-month period, reflecting cost synergies from the CareFusion acquisition.
- 7The company has a strong liquidity position with $1.7 billion in cash and short-term investments as of March 31, 2016.