Summary
Becton Dickinson & Co. (BDX) reported its financial results for the fiscal quarter ending December 30, 2017. The period was significantly marked by the completion of the acquisition of C.R. Bard, Inc. on December 29, 2017, for approximately $25 billion. This acquisition is expected to be transformative for the company, creating a leading medical technology entity. Financially, the quarter showed a reported net loss of $136 million, or -$0.76 per diluted share, a stark contrast to the $562 million net income, or $2.58 per diluted share, reported in the prior year's comparable quarter. This net loss was heavily influenced by substantial acquisition-related costs, including transaction and integration expenses, as well as provisional tax expenses stemming from the new U.S. tax legislation. Despite the reported net loss, the company experienced revenue growth of 5.4% year-over-year, reaching $3.08 billion, driven by volume increases in both its Medical and Life Sciences segments, and a favorable foreign currency translation impact. The balance sheet reflects a significant increase in assets and liabilities due to the Bard acquisition, with total assets growing to $55.4 billion from $37.7 billion at the prior quarter's end. Long-term debt also increased substantially to fund the acquisition. While the immediate financial results were impacted by the large acquisition, investors should focus on the strategic benefits and future growth prospects presented by the combined entity.
Financial Highlights
53 data points| Revenue | $3.08B |
| Cost of Revenue | $1.53B |
| Gross Profit | $1.55B |
| R&D Expenses | $191.00M |
| SG&A Expenses | $773.00M |
| Operating Expenses | $2.85B |
| Operating Income | $235.00M |
| Interest Expense | $158.00M |
| Net Income | -$136.00M |
| EPS (Basic) | $-0.76 |
| EPS (Diluted) | $-0.76 |
| Shares Outstanding (Basic) | 230.04M |
| Shares Outstanding (Diluted) | 230.04M |
Key Highlights
- 1Completion of the C.R. Bard, Inc. acquisition for approximately $25 billion on December 29, 2017, creating a significantly larger medical technology company.
- 2Reported a net loss of $136 million for the quarter, a significant decrease from a net income of $562 million in the prior year, largely due to acquisition-related costs and provisional tax expenses.
- 3Revenues increased by 5.4% to $3.08 billion, driven by volume growth in both the Medical and Life Sciences segments and a favorable foreign currency translation.
- 4Total assets significantly increased to $55.4 billion, primarily due to the Bard acquisition, with substantial growth in Goodwill and intangible assets.
- 5Long-term debt rose to $22.1 billion from $18.7 billion, reflecting debt issuance to finance the Bard acquisition.
- 6The company recognized a provisional expense of $270 million related to the new U.S. Tax Cuts and Jobs Act.
- 7Operating cash flow remained stable at $320 million, indicating ongoing operational strength despite the large acquisition.