Summary
Becton Dickinson & Co. (BDX) reported a net loss of $132 million for the third quarter of fiscal year 2017, compared to a net income of $390 million in the prior year's quarter. This loss was largely driven by a significant $741 million non-cash charge related to the modification of dispensing equipment lease contracts, coupled with ongoing integration and transaction costs associated with the pending acquisition of C.R. Bard, Inc. Despite the quarterly loss, the company generated $1.424 billion in cash from operations for the first nine months of the fiscal year, highlighting its operational cash-generating capabilities. Significant financing activities occurred, including substantial debt and equity issuances to fund the Bard acquisition, resulting in a large increase in cash and equivalents to $13.852 billion. Investors should monitor the progress and impact of the C.R. Bard acquisition, as well as the ongoing operational performance of its Medical and Life Sciences segments.
Financial Highlights
54 data points| Revenue | $3.04B |
| Cost of Revenue | $1.53B |
| Gross Profit | $1.50B |
| R&D Expenses | $186.00M |
| SG&A Expenses | $719.00M |
| Operating Expenses | $3.26B |
| Operating Income | -$223.00M |
| Interest Expense | $184.00M |
| Net Income | -$132.00M |
| EPS (Basic) | $-0.75 |
| EPS (Diluted) | $-0.75 |
| Shares Outstanding (Basic) | 220.81M |
| Shares Outstanding (Diluted) | 220.81M |
Key Highlights
- 1Reported a net loss of $132 million for the three months ended June 30, 2017, a significant decrease from the $390 million net income in the prior year's quarter.
- 2A substantial $741 million non-cash charge was incurred due to a modification of dispensing equipment lease contracts, significantly impacting quarterly results.
- 3The company raised substantial capital through equity ($4.8 billion) and debt ($9.6 billion) offerings in Q3 FY17 to finance the pending acquisition of C.R. Bard, Inc.
- 4Total assets increased significantly to $37.166 billion from $25.586 billion in the prior year, largely due to debt and equity financing.
- 5Cash and equivalents surged to $13.852 billion, up from $1.541 billion in the prior year, reflecting the capital raised.
- 6Consolidated revenues decreased by 5.1% year-over-year to $3.035 billion for the quarter, impacted by the divestiture of the Respiratory Solutions business and unfavorable foreign currency translation.
- 7The Medical segment saw a revenue decline of 8.8% primarily due to the divestiture and lease contract modifications, while the Life Sciences segment experienced revenue growth of 3.5%.