Becton Dickinson Earnings: Margins Expand, but Net Income Falls

S&P 500 (NYSE:SPY) component Becton Dickinson and Company (NYSE:BDX) reported its results for the fourth quarter. Becton, Dickinson & Company provides healthcare institutions, life science researchers, clinical laboratories, and individual consumers with laboratory equipment, medical supplies, devices, and diagnostic products.

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Becton Dickinson and Company Earnings Cheat Sheet

Results: Net income for the medical/dental supplies fell to $289 million ($1.43 per share) vs. $300 million ($1.36 per share) a year earlier. This is a decline of 3.6% from the year-earlier quarter.

Revenue: Fell 1.1% to $1.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Becton Dickinson and Company beat the mean analyst estimate of $1.40 per share. Analysts were expecting revenue of $1.94 billion.

Quoting Management: “We are proud of our solid finish to 2012,” said Vincent A. Forlenza, Chairman of the Board, Chief Executive Officer and President. “Despite a challenging macroeconomic environment, we delivered on our financial and operating goals while continuing our ongoing investments in geographic expansion, new product platforms and strategic acquisitions. We believe we are well positioned to succeed and will continue to focus on our strategy of investing and innovating for growth. We are confident in our outlook for fiscal year 2013 and remain committed to delivering value to our customers and shareholders.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of $1.52 versus a mean estimate of net income of $1.53 per share.

Net income has dropped 11.2% year-over-year on average across the last five quarters. Performance was hurt by a 24.4% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.29 a share to $1.28 over the last ninety days. For the fiscal year, the average estimate has been unchanged at $5.36 a share.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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