Becton, Dickinson’s Earnings Report

Today is another good day for our Buy List. I have one earnings report to pass along. Becton, Dickinson (BDX) earned $1.26 a share for its first quarter which is a nice increase from the $1.07 a share it made for last year’s first quarter. The Street was expecting $1.16 a share.

In the biosciences segment, sales rose 11% on demand for clinical and research instruments. Sales were down in the medical segment by 2% as strong sales of insulin delivery products were more than offset by a drop in surgical systems products and an expected decline in prefillable devices in the U.S.
Becton Dickinson Chief Executive Edward Ludwig said earlier this month that the company hasn’t felt the economic squeeze thus far, though he did note concern that hospital budget constraints will slow device makers. While acknowledging these strains, he also noted many of Becton’s medical products are very basic items – like surgical blades or catheters. Though no primary demand disruptions have been seen, the company is carefully controlling costs.
Analysts are also keeping a keen eye on resin prices for signs of a possible retreat. High oil prices last summer boosted the cost of resins, which are used to make plastic syringes, as well as plastic dishes used in diagnostic tests and other laboratory equipment. The company spent about $230 million in resins in the last fiscal year, which was up $30 million from the prior year.

The company also said it expects growth this year from 9% to 11%. That seems like a nice increase to me, but I think the Street was expecting more so the shares are down today.

Posted by on January 28th, 2009 at 3:55 pm


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