01—Abstract
Summary
Summary of the 10-Q filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Becton Dickinson & Co. (BDX) reported a 9.8% increase in revenue for the first quarter of fiscal year 2025, reaching $5.168 billiona, driven by a 5.7% boost from the recent acquisition of Advanced Patient Monitoring and organic growth across its segments.
Net income grew to $303 millionb ($1.04 EPS) from $281 million ($0.97 EPS) in the prior year's quarter, indicating a positive trend in profitability. The company also announced its intention to separate its Biosciences and Diagnostic Solutions businesses, aiming to enhance shareholder value.
This strategic move, expected to be completed in fiscal year 2026, suggests a focus on optimizing its portfolio and unlocking potential value. While the company navigates various legal and regulatory matters, including ongoing product liability claims and FDA inquiries, its financial performance shows resilience, supported by strong operational execution and strategic acquisitions.
02—Key points
Key Highlights
- Total revenues increased by 9.8% to $5.168 billion for the first quarter of fiscal year 2025, compared to $4.706 billion in the prior year's quarter.
- Net income rose to $303 million from $281 million year-over-year, with diluted EPS increasing to $1.04 from $0.96.
- The acquisition of Advanced Patient Monitoring contributed approximately 5.7% to the reported revenue growth.
- The company announced its intention to separate its Biosciences and Diagnostic Solutions businesses, a strategic move expected to be completed in fiscal year 2026.
- Operating cash flow was $693 million, a decrease from $855 million in the prior year, primarily due to changes in operating assets and liabilities.
- The company repurchased $750 million of its common stock during the quarter.
- Effective tax rate significantly decreased to 0.9% from 21.6% in the prior year, mainly due to the release of a valuation allowance for a non-U.S. tax credit.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Becton Dickinson & Co kept $0.06.
- Revenue$5.17B100.0%
- Cost of revenue−$2.93B56.8%
- Gross profit$2.23B43.2%
- Operating costs−$1.78B34.5%
- Operating income$453.0M8.8%
- Interest, other & tax−$150.0M2.9%
- Net income$303.0M5.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed February 6, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $5.17B$4.71B | +9.8% |
| Cost of Revenue | $2.93B$2.68B | +9.5% |
| Gross Profit | $2.23B$2.03B | +10.3% |
| R&D Expenses | $343.00M$290.00M | +18.3% |
| SG&A Expenses | $1.32B$1.21B | +8.7% |
| Operating Expenses | $4.71B$4.27B | +10.5% |
| Operating Income | $453.00M$439.00M | +3.2% |
| Net Income | $303.00M$281.00M | +7.8% |
| EPS (Basic) | $1.05$0.97 | +8.2% |
| EPS (Diluted) | $1.04$0.96 | +8.3% |
| Shares Outstanding (Basic) | 289.50M290.11M | −0.2% |
| Shares Outstanding (Diluted) | 290.39M291.40M | −0.3% |
05—Questions
Frequently Asked Questions
What is the company's outlook regarding the proposed separation of its Biosciences and Diagnostic Solutions businesses?
Becton Dickinson & Co. announced its intention to separate its Biosciences and Diagnostic Solutions businesses on February 5, 2025. The company expects to provide more specifics on the separation plans by the end of fiscal year 2025 and aims for completion in fiscal year 2026. The form of separation, timing, and whether it will occur are subject to various conditions, including board approval, regulatory clearances, and SEC requirements. This strategic move is intended to maximize shareholder value.
How did the acquisition of Advanced Patient Monitoring impact the company's financial results?
The acquisition of Edwards Lifesciences' Critical Care product group, now BD Advanced Patient Monitoring, was completed on September 3, 2024. For the first quarter of fiscal year 2025, this acquisition contributed approximately 5.7% to the overall revenue growth of 9.8%. While it boosted revenues, the acquisition also led to certain expenses, including a $180 million fair value step-up adjustment for inventory and higher amortization of intangible assets, which impacted the Medical segment's gross profit margin.
What are the main legal and regulatory matters the company is currently facing?
Becton Dickinson & Co. is involved in several legal and regulatory matters. These include ongoing product liability claims related to hernia repair devices, pelvic mesh, IVC filters, and implantable ports. The company is also addressing issues with the FDA, including a consent decree for its Alaris infusion pumps and a recent warning letter concerning its dispensing quality management system. Additionally, there are ongoing investigations by the Department of Justice and SEC related to past practices. The company has accrued significant amounts for product liability matters and has settled some regulatory issues, such as the SEC investigation for $175 million.
How has the company managed its debt and capital resources during the quarter?
During the first quarter of fiscal year 2025, the company's net cash used in financing activities was $1.928 billion, primarily due to $875 million in debt payments and $750 million in stock repurchases. The company paid $302 million in dividends. Total debt stood at $18.758 billion at the end of the quarter, with a weighted average cost of debt at 3.3%. The company has access to a $2.75 billion revolving credit facility, under which no borrowings were outstanding as of December 31, 2024. It also utilizes commercial paper programs.
06—Continue