What are the main non-GAAP financial measures BDX is emphasizing in this filing?

BDX is highlighting currency-neutral revenue growth, comparable revenue growth, and adjusted earnings per share (EPS). These measures are designed to provide a clearer view of the company's underlying performance by excluding certain items that can distort period-over-period comparisons.

How does the C.R. Bard acquisition impact the reported revenue growth?

The comparable revenue growth figures presented are adjusted to reflect the C.R. Bard acquisition as if it had occurred at the beginning of fiscal year 2017. This allows for a more consistent comparison of revenue trends, factoring in the significant impact of integrating Bard into BDX's operations.

What types of expenses are excluded from BDX's adjusted EPS?

Adjusted EPS excludes items such as purchase accounting adjustments, acquisition-related transaction and integration costs (including those related to Bard), financing costs, hurricane recovery costs, the loss from debt extinguishment, reversal of a litigation reserve, dilution from shares issued for the Bard acquisition, and additional tax expenses from recent U.S. tax legislation. BDX views these as items not reflective of ordinary operations.

Should investors rely solely on the non-GAAP measures presented?

No, BDX explicitly states that non-GAAP measures are provided on a supplemental basis and should not be considered in isolation or as a substitute for GAAP results. Investors are advised to consider these non-GAAP measures in conjunction with the company's GAAP financial statements, acknowledging that the excluded items can have a material impact on net income and EPS.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BDX) filed an 8-K on May 3, 2018, reporting its financial results for the second fiscal quarter ended March 31, 2018. The filing primarily consists of a press release detailing these results and importantly, the non-GAAP financial measures used by management to provide a clearer view of the company's performance. Investors should note that BDX is emphasizing currency-neutral revenue growth and comparable revenue growth, which notably includes adjustments for the significant acquisition of C.R. Bard, Inc. (Bard). These comparable metrics aim to present a more normalized view of revenue, accounting for the timing of the Bard acquisition, divestitures, and reclassifications. Furthermore, the company is providing adjusted earnings per share (EPS) figures, excluding a range of items that management deems to impact comparability. These exclusions include purchase accounting adjustments, integration and restructuring costs related to Bard, financing costs, hurricane recovery costs, and the impact of recent U.S. tax legislation. BDX stresses that these non-GAAP measures are provided to supplement GAAP results and offer additional insight into underlying operational performance and facilitate year-over-year comparisons, though investors are cautioned to consider them alongside GAAP figures.

Key Highlights

1BDX reported financial results for its second fiscal quarter ended March 31, 2018.
2The company is furnishing a press release (Exhibit 99.1) with its financial results.
3Key non-GAAP measures highlighted include currency-neutral revenue growth and comparable revenue growth.
4Comparable revenue growth figures are adjusted to reflect the C.R. Bard, Inc. (Bard) acquisition as if it occurred at the start of fiscal year 2017.
5Adjustments for comparable revenue growth also account for product line movements, divestitures, royalty reclassifications, and intercompany eliminations.
6The filing also presents adjusted earnings per share (EPS), excluding various items affecting comparability.
7Excluded items from adjusted EPS include purchase accounting, integration costs, financing costs, hurricane recovery, and U.S. tax legislation impacts.

BECTON DICKINSON & CO 8-K Report, Financial Results (May 3, 2018)

Summary

Key Highlights

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