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Becton Dickinson’s BD Medical Segment Sales in Fiscal 3Q16

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Aug. 9 2016, Updated 9:06 a.m. ET

BD Medical’s sales

Becton, Dickinson and Company, or BD (BDX), reported ~$3.2 billion in worldwide revenue in fiscal 3Q16. Of that, ~$2.2 billion was generated by BD Medical, a segment that contributed ~70% to BD’s total revenues. These sales figures represent about a 1.6% YoY (year-over-year) increase in fiscal 3Q16.

The segment’s adjusted revenues increased by approximately 3%. The segment’s Medication Management Solutions and Diabetes Care divisions reported strong performances. However, the Pharmaceutical Systems and Respiratory Solutions divisions reported weak performances due to the impact of patterns in customer orders and the capital placement timing. Its Respiratory Solutions division registered a decline of 3.3%, largely attributable to the capital placement timing, as mentioned above.

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BD’s major competitors in the United States include Baxter International (BAX), Abbott Laboratories (ABT), and Boston Scientific (BSX), which reported YoY sales growth of 4%, 3.2%, and 15%, respectively, in 2Q16. The iShares S&P 500 Growth ETF (IVW) invests approximately 0.37% of its total holdings in BDX.

Growth drivers

The Pharmaceutical Systems division witnessed growth of around 1.5%. The Diabetes Care division’s revenues increased 6.6%, boosted by the growth in the sales of pen needles and a favorable prior year comparison. The Medication Management Solutions division’s sales increased by approximately 6.2%, driven primarily by Pyxis platform installations.

The strong performance in infusion systems and the double-digit growth in the company’s disposables business also strengthened BD’s performance in fiscal 3Q16. The Respiratory Solutions division witnessed decreased revenues, which negatively impacted the company’s quarterly sales by approximately 60 basis points. BD expects to register BD Medical sales growth of approximately 4.5%–5% in 2016.

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