What are the key non-GAAP financial measures Becton Dickinson is highlighting in this report?

Becton Dickinson is highlighting currency-neutral revenue growth, comparable revenue growth (which includes C.R. Bard's results and other adjustments), and adjusted earnings per share (EPS). These measures are designed to offer a clearer view of the company's operational performance by removing the impact of currency fluctuations, acquisition accounting, divestitures, and other non-recurring items.

Why is BD using non-GAAP measures instead of just GAAP?

BD uses non-GAAP measures to provide investors with additional insight into its financial results and underlying operational performance. Management believes these adjustments help in better understanding performance trends, evaluating results in comparison to prior periods, and assessing performance relative to peer companies, especially after significant events like the C.R. Bard acquisition.

What is 'comparable revenue growth' and why is it important?

Comparable revenue growth adjusts for factors that affect year-to-year comparability. For BD, this includes reflecting the C.R. Bard results in the prior year, eliminating revenues from divestitures, and accounting for other specific adjustments like customer rebates and royalty reclassifications. This metric aims to show how the business would have performed without these specific items impacting the reported revenue figures.

What should investors consider when looking at these non-GAAP results?

Investors should consider these non-GAAP results as supplemental information alongside the company's GAAP (Generally Accepted Accounting Principles) results. It's important to note that non-GAAP measures may differ from those used by other companies and exclude items that could have a material impact on GAAP net income or EPS. Management uses them in conjunction with GAAP results to address these limitations.

BDX 8-K: Earnings & Results

Summary

Becton, Dickinson and Company (BD) has filed an 8-K report on November 5, 2019, to announce its fourth fiscal quarter and full fiscal year financial results ending September 30, 2019. The report highlights the company's use of non-GAAP financial measures, including currency-neutral revenue growth, comparable revenue growth, and adjusted earnings per share (EPS). These measures are presented to provide investors with a clearer understanding of the company's underlying operational performance by adjusting for factors like foreign currency fluctuations, acquisition impacts (specifically C.R. Bard), divestitures, and other non-recurring items. Management utilizes these non-GAAP metrics for internal performance evaluation, budgeting, and comparisons with peers. While these measures offer additional insight beyond traditional GAAP results, investors are reminded that they should be considered alongside GAAP figures as they may differ from measures used by other companies and exclude items that could materially impact net income. The company's forward-looking statements include estimated revenue and adjusted EPS growth for fiscal year 2020 on a currency-neutral basis.

Key Highlights

1BD announced its Q4 and full fiscal year 2019 financial results via a press release on November 5, 2019.
2The company is emphasizing non-GAAP financial measures, including currency-neutral revenue growth, to better illustrate underlying performance.
3Comparable revenue growth is also presented, which incorporates C.R. Bard's results retrospectively and accounts for divestitures and other adjustments.
4Adjusted EPS is provided to exclude items not considered part of ordinary operations, enhancing period-to-period comparability.
5These non-GAAP measures are used by management for performance evaluation, strategic planning, and benchmarking against competitors.
6Investors are advised to consider these non-GAAP results supplementally alongside GAAP figures, acknowledging potential differences and excluded material impacts.
7The company has provided estimated revenue and adjusted EPS growth for fiscal year 2020, adjusting for currency impacts.

BECTON DICKINSON & CO 8-K Report, Financial Results (Nov 5, 2019)

Summary

Key Highlights

Frequently Asked Questions