Summary
Becton Dickinson & Co. (BDX) reported its fiscal second quarter 2018 results, heavily influenced by the recent acquisition of C.R. Bard, Inc. Total revenues surged by 42.2% year-over-year to $4.222 billion, with approximately 33% of this growth attributed to the Bard acquisition. The company experienced a net loss of $12 million, or $(0.19) per diluted share, compared to a net income of $344 million, or $1.58 per diluted share, in the prior-year period. This swing to a loss was significantly impacted by acquisition-related expenses, including a substantial $422 million inventory step-up adjustment for Bard's inventory. Despite the near-term net loss, the underlying operational performance shows positive volume growth and contributions from key segments. The balance sheet reflects the significant impact of the Bard acquisition, with total assets increasing substantially to $54.57 billion from $37.73 billion at fiscal year-end 2017, driven by increases in goodwill, developed technology, and property, plant, and equipment. Long-term debt also increased significantly to fund the acquisition. The company continues to manage its cash flow effectively, with operating activities providing $1.017 billion in cash over the first six months. Investors should monitor the integration of Bard, ongoing litigation matters, and the impact of the new U.S. tax legislation, which has resulted in provisional expense recognition.
Financial Highlights
53 data points| Revenue | $4.22B |
| Cost of Revenue | $2.62B |
| Gross Profit | $1.61B |
| R&D Expenses | $259.00M |
| SG&A Expenses | $1.06B |
| Operating Expenses | $4.04B |
| Operating Income | $186.00M |
| Interest Expense | $185.00M |
| Net Income | -$12.00M |
| EPS (Basic) | $-0.19 |
| EPS (Diluted) | $-0.19 |
| Shares Outstanding (Basic) | 267.34M |
| Shares Outstanding (Diluted) | 267.34M |
Key Highlights
- 1Total revenues increased by 42.2% to $4.222 billion, primarily driven by the acquisition of C.R. Bard, which contributed approximately 33% of the growth.
- 2The company reported a net loss of $12 million for the quarter, a significant decrease from a net income of $344 million in the prior year, largely due to acquisition-related costs, including a $422 million inventory step-up.
- 3Diluted EPS was $(0.19) for the quarter, down from $1.58 in the prior year, reflecting the net loss.
- 4Total assets significantly increased to $54.57 billion, largely due to the $25 billion acquisition of C.R. Bard, which added substantial goodwill and intangible assets.
- 5Long-term debt increased significantly to $22.59 billion from $18.67 billion, primarily to finance the Bard acquisition.
- 6Operating cash flow remained strong, generating $1.017 billion for the six months ended March 31, 2018.
- 7The company is facing significant product liability litigation, particularly related to Bard's hernia repair, women's health, and filter products, with potential material adverse effects on financial results.