Summary
Becton, Dickinson and Company (BD) filed an 8-K on August 2, 2018, to report its third fiscal quarter financial results ending June 30, 2018. The filing primarily furnished a press release detailing these results, with a significant focus on providing non-GAAP financial measures to offer investors a clearer view of the company's performance. These non-GAAP measures are designed to adjust for factors such as currency fluctuations, the impact of the C.R. Bard acquisition, integration costs, hurricane recovery expenses, and other items deemed outside ordinary operations, aiming to enhance period-to-period comparability. Investors should note the company's emphasis on "Comparable Revenue Growth" and "Adjusted Earnings Per Share" (Adjusted EPS). These metrics are presented to provide insights into the underlying operational performance, particularly in the context of the significant Bard acquisition and other business model adjustments. While BD believes these non-GAAP measures are valuable for understanding operational trends and facilitating comparisons, the company explicitly states that they should be considered alongside, not as a substitute for, GAAP results, and may differ from measures used by other companies.
Key Highlights
- 1BD furnished a press release on August 2, 2018, detailing its third fiscal quarter 2018 financial results.
- 2The company provided several non-GAAP financial measures, including Currency-Neutral Revenue Growth and Comparable Revenue Growth.
- 3Comparable Revenue Growth is adjusted to reflect the C.R. Bard acquisition as if it occurred at the start of fiscal year 2017, alongside other adjustments for product line movements and divestitures.
- 4Adjusted Earnings Per Share (Adjusted EPS) is presented to exclude items not considered part of ordinary operations, aiming to improve comparability.
- 5Exclusions for Adjusted EPS include purchase accounting adjustments, acquisition-related costs, hurricane recovery costs, and impacts from tax legislation.
- 6Management uses these non-GAAP measures to evaluate performance, plan budgets, and compare results to prior periods and peer companies.
- 7The filing emphasizes that non-GAAP measures are supplemental and should be considered in conjunction with, not as a replacement for, GAAP results.